IMF Approves $1.4B Emergency Funding for Ukraine

The International Monetary Fund (IMF) said its executive board approved $1.4 billion in emergency funding for Ukraine to help meet urgent humanitarian needs and mitigate the impacts of Russia’s invasion.

The funds came from the Rapid Financing Instrument, a measure that provides emergency funding without a full-fledged loan program, the IMF said in a statement on Wednesday.

“The Russian military invasion of Ukraine has been responsible for a massive humanitarian and economic crisis,” said IMF Managing Director Kristalina Georgieva, adding that Ukraine is possibly headed into a deep recession this year.

The international lender said that the economic consequences of the war were already “very serious”, noting that over 2 million people have already fled Ukraine in just 13 days and that key infrastructure were already destroyed.

“Financing needs are large, urgent, and could rise significantly as the war continues,” Georgieva said.

The fund comes on top of $700 million disbursed to Ukraine in December and $2.7 billion in IMF Special Drawing Rights that Ukraine received as part of an IMF allocation in August.

Meanwhile, the World Bank has approved a $723 million package of loans and grants to Ukraine on Monday.

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