Finance

The IMF opens an account to financially support Ukraine – Finance

The International Monetary Fund (IMF) has opened a new account to send donor funds to Ukraine. The tool was approved Friday evening by the IMF’s executive board, he said in a statement.

Countries wishing to support Ukraine financially can do so securely through this account, for example in reserve currencies or special drawing rights. These are units of account within the IMF that all member countries have. The Fund will then transfer the money collected to the Ukrainian account.

Canada recently announced that it will provide the Ukrainian government with up to one billion Canadian dollars (730 million euros) in new loan resources through this new instrument. Canada is therefore the first country to use this account administered for Ukraine at the IMF, but other countries and organizations will also be able to deposit money there.

Ukraine needs cash to finance the war with Russia. Direct consequences of the war: the incomes do not cease decreasing and the economy is shaken. The army and aid to citizens also cost a lot of money. The fund estimates that due to the war, the Ukrainian economy could shrink by 25-35%.

At the beginning of March, the IMF had approved an emergency loan of 1.4 billion dollars to Ukraine, which is equivalent to almost 1.3 billion euros.

For its part, Ukraine raised about 1.1 billion euros through the sale of war bonds. Kyiv has also received financial support from the European Union and the World Bank among others.

Countries wishing to support Ukraine financially can do so securely through this account, for example in reserve currencies or special drawing rights. These are units of account within the IMF that all member countries have. The Fund will then transfer the money collected to the Ukrainian account. Canada recently announced that it will provide the Ukrainian government with up to one billion Canadian dollars (730 million euros) in new loan resources through this new instrument. Canada is therefore the first country to use this account administered for Ukraine at the IMF, but other countries and organizations will also be able to deposit money there. Ukraine needs cash to finance the war with Russia. Direct consequences of the war: the incomes do not cease decreasing and the economy is shaken. The army and aid to citizens also cost a lot of money. The fund estimates that due to the war, the Ukrainian economy could shrink by 25-35%. At the beginning of March, the IMF had approved an emergency loan of 1.4 billion dollars to Ukraine, which is equivalent to almost 1.3 billion euros. For its part, Ukraine raised about 1.1 billion euros through the sale of war bonds. Kyiv has also received financial support from the European Union and the World Bank among others.

About the author

on100dayloans

Leave a Comment