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War in Ukraine: Ukraine receives next billion-dollar tranche from the IMF

War in Ukraine: Ukraine receives next billion-dollar tranche from the IMF
War in Ukraine: Ukraine receives next billion-dollar tranche from the IMF

The IMF is helping war-torn Ukraine with billions more for its budget. However, a solution to the demands of private lenders must be found by the end of the month.

Ukraine, which has been financially hit by Russia’s war of aggression, has received another tranche of the equivalent of over two billion euros from the International Monetary Fund (IMF). The money is part of an ongoing loan program worth the equivalent of just over 15 billion euros, Prime Minister Denys Shmyhal said on Telegram. The money will be used for important budget expenditures, especially for social assistance and salaries of state employees, including doctors and teachers. Since the Russian attack in February 2022, the Eastern European country has received the equivalent of over 80 billion euros in budget aid from foreign partners alone, according to Ukrainian figures.

Last Sunday, the British business magazine “The Economist” reported that Ukraine could default on its debts in August. Several private investment companies expect the country to resume debt repayments, which were suspended at the start of the war. Kiev does not see itself in a position to do this and expects a debt cut or at least a debt restructuring. State lenders, on the other hand, have frozen Kiev’s debt payments until 2027. According to calculations by the “Economist”, the country’s debt burden will rise to 94 percent of gross domestic product by the end of the year. In the eurozone, a maximum of 60 percent is considered stable.

Source: Stern

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