WASHINGTON, Dec 21,(V7N) – The International Monetary Fund (IMF) approved a $1.1 billion disbursement to Ukraine on Friday as part of its ongoing four-year, $15.5 billion loan program, aimed at providing critical budget support during the ongoing Russian invasion.

This latest installment brings total disbursements under the program to $9.8 billion since it was initiated in March 2023.

IMF Praises Ukraine's Resilience

IMF Managing Director Kristalina Georgieva commended Ukraine's efforts to maintain economic stability in the face of war.

"Russia's war in Ukraine continues to take a devastating social and economic toll on Ukraine," Georgieva said. "Despite the war, macroeconomic stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support."

She noted that Ukraine's economy has shown resilience but faces risks from Russian attacks on critical energy infrastructure and a tight labor market.

"Preparedness and contingency planning are key to enable appropriate policy action should risks materialize," Georgieva added.

Funds Disbursed Ahead of US Administration Change

The approval ensures that Kyiv receives the funds before US President-elect Donald Trump takes office on January 20. Trump has expressed skepticism about US financial support for Ukraine and pledged to end the war swiftly, sparking concerns among allies that Ukraine might face pressure to concede territory to Russia.

Ukrainian Prime Minister Denys Shmygal expressed gratitude for the IMF's continued assistance during this challenging period.

"I am grateful to the team of the International Monetary Fund for their consistent assistance to our country in difficult times," Shmygal wrote on Telegram.

Sustaining Ukraine Amid War

The IMF's financial backing is a crucial lifeline for Ukraine as it navigates the twin challenges of war and economic uncertainty. With significant damage to infrastructure and energy supplies under constant threat, international financial support remains pivotal in keeping the Ukrainian government operational and its economy afloat.

As geopolitical uncertainties loom, including a potential shift in US policy under the incoming administration, Ukraine's economic stability will heavily depend on continued international cooperation and aid.

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