WASHINGTON: The International Monetary Fund said on Friday its executive board had approved a four-year $15.6 billion loan programme for Ukraine, part of a broader $115bn international support package to help the country meet urgent funding needs.

The decision clears the way for an immediate disbursement of about $2.7bn to Kyiv, the Fund said in a statement.

The Extended Fund Facility loan is the first major financing programme approved by the IMF for a country involved in a large-scale war. Ukraine’s previous $5bn IMF programme expired last year.

“Russia’s invasion of Ukraine continues to have a devastating economic and social impact,” IMF official Gita Gopinath said in a statement.

Despite this, Ukrainian authorities “have nevertheless managed to maintain overall macroeconomic and financial stability, thanks to skillful policymaking and substantial external support”, she added.

The decision formalises an IMF staff-level agreement reached with Ukraine on March 21 that takes into consideration the country’s path to accession to the European Union after the war.

Ukrainian President Volodymyr Zelensky welcomed the new funding.

Published in Dawn, April 1st, 2023