Would you like to receive notifications on latest updates of the following headlines?

Economic slowdown: IMF, Ukraine reach $1.1bn support deal

POSTED ON September 11, 2024 •   World      BY Abiodun Saheed Omodara
People walk on a pedestrian bridge during the sunset in city center of Kyiv, Ukraine, September 9, 2024. l Credit: AP

The International Monetary Fund said on Tuesday it had reached a preliminary agreement with Ukraine that would give the war-torn country access to about $1.1 billion in financial assistance.

The agreement follows what Kyiv said on Tuesday were "difficult" talks and is subject to approval by the fund's executive board, which the IMF said in a statement is expected to happen in "coming weeks".

The IMF is a key international lender to Kyiv and its four-year $15.6 billion programme is a crucial part of a bigger global economic support package to Ukraine as it gears up for a third winter trying to fend off Russia's full-scale invasion.

"Russia's war in Ukraine continues to have a devastating impact on the country and its people," Gavin Gray, who led the IMF's monitoring mission to Kyiv for the fifth review of the lending programme, said in a statement.

"Skillful policymaking, the adaptability of households and firms, and robust external financing has helped support macroeconomic and financial stability."

The IMF, however, said that the risks to Ukraine "remain exceptionally high" with an economic slowdown expected due to the impact of the war on labour market and Russia's continued attacks on the energy infrastructure, among other factors.

Kyiv is spending about 60% of its total budget to fund its army and relies heavily on financial support from its Western partners to pay pensions and wages to public sector employees and finance social and humanitarian spending.

Ukraine has received about $98 billion in financial aid from its Western partners since the start of the war, finance ministry data showed.

The IMF urged the Kyiv government, which President Volodymyr Zelenskiy reshuffled last week, to "respect financing constraints and debt sustainability objectives" in the 2025 budget and look for ways to increase domestic revenues.

The government has said previously it plans to raise taxes and has already implemented other fiscal measures, including increasing import and excise duties.

Ukraine also won an agreement from bondholders to restructure and write down its debt.

0
READ ALSO
US federal judge issues nationwide injunction against birthright executive order
BY Abiodun Saheed Omodara February 6, 2025 0

President Donald Trump's executive order, which seeks to eliminate birthright citizenship for childr...

READ ALSO
Shifting Alliances: U.S. withdraws from UN Bodies, aligning with Israeli perspectives
BY Abiodun Saheed Omodara February 5, 2025 0

In a significant shift in foreign policy, U.S. President Donald Trump signed an executive order on T...

READ ALSO
U.S. instruct citizens in DRC to leave country, amid rising violence
BY Abiodun Saheed Omodara February 3, 2025 0

The United States has warned all of its citizens to evacuate the Democratic Republic of Congo due to...

READ ALSO
Ted Cruz Urges Trump to honor Sowell with Presidential freedom medal
BY Abiodun Saheed Omodara February 2, 2025 0

U.S. Senator Ted Cruz has called on President Donald Trump to grant the esteemed African-American ec...

READ ALSO
Liberia, Nigeria unite to combat climate change
BY Abiodun Saheed Omodara January 31, 2025 0

In an effort to tackle the severe consequences of climate change, a group of parliamentarians and en...

READ ALSO
Trump blames pass administration policies for Washington air crash, calls for accountability
BY Abiodun Saheed Omodara January 30, 2025 0

Following the Washington Air crash that resulted in the deaths of 67 individuals near Reagan Nationa...

READ ALSO
Trump targets over 3000 Nigerians for deportation
BY Abiodun Saheed Omodara January 29, 2025 0

Over 3,690 Nigerians residing in the United States are at risk of deportation due to actions taken b...

READ ALSO
U.S. halts all foreign aid, exempt Israel, Egypt amid 'America First' Policy Shift
BY Abiodun Saheed Omodara January 25, 2025 0

USA (AFP) - The United States, the largest donor globally, halted nearly all foreign aid on Friday,...

OUR CHANNELS:

FG advocates reversal of mother tongue instruction policy in primary education
BY Abiodun Saheed Omodara February 9, 2025 0

ABUJA, Nigeria- The Federal Government has encouraged the National Council on Education and relevant...


Shettima highlights Nigeria's growing medical tourism
BY Abiodun Saheed Omodara February 9, 2025 0

Vice-President Kashim Shettima has stated that patients from the United States (US) and other nation...


Fake Number plates, major security threat- FRSC
BY Abiodun Saheed Omodara February 7, 2025 0

The Lagos State Command of the Federal Road Safety Corps (FRSC) has identified fake number plates as...


Nigeria's education system set for major reform, aligning with global standards
BY Abiodun Saheed Omodara February 9, 2025 0

In an effort to overhaul the Nigerian education system to align it with those of more advanced count...


Geopolitical Shift: 31 new states proposes across Nigeria's regions
BY Abiodun Saheed Omodara February 7, 2025 0

The House of Representatives Committee on the review of the 1999 Constitution has proposed the creat...


FRSC Partners NDLEA, NESREA to combat illicit drug Use
BY Abiodun Saheed Omodara February 7, 2025 0

The Federal Road Safety Corps (FRSC) is collaborating with the National Drug Law Enforcement Agency...


FCTA allocates N795.6m for 12-Month insurance policy
BY Abiodun Saheed Omodara February 9, 2025 0

The Federal Capital Territory Administration (FCTA) has allocated N795.6 million to secure a 12-mont...


65% prisoners awaiting trial- NBA
BY Abiodun Saheed Omodara February 7, 2025 0

AKURE (NAN) - Nigerian Bar Association (NBA) reports that over 65 percent of the population in corre...


Tinubu terminates meeting with GAC over Obasa's reinstatement
BY Abiodun Saheed Omodara February 6, 2025 0

President Bola Tinubu unexpectedly terminated a meeting with members of the Governance Advisory Coun...


Shettima launches DMO supervisory board to enhance fiscal, monetary policy coordination
BY Abiodun Saheed Omodara February 7, 2025 0

Vice President Kashim Shettima has launched the Supervisory Board of the Debt Management Office (DMO...


More Articles

Load more...

Menu