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individual allocation to Ukraine. At the same time, Khan expressed concern about continued financing for Ukraine if the war continues into next year. The budget commissioner also admitted that the rapid increase in energy prices and inflation in the EU might affect the extent to which the European community will be ready to provide Kyiv with additional financial support.
Ukraine criticizes the IMF for slow progress in providing assistance.
Ukraine’s prime minister Denys Shmyhal condemned the International Monetary Fund’s slow progress in moving forward with a new assistance package for the war-torn nation. Shmyhal said that the Washington-based lender has been too slow to reach a new deal as Ukraine defends against a full-scale invasion by President Vladimir Putin’s troops that is now heading into its seventh month. Kyiv officially applied for a new IMF loan program in August and hoped to get an initial disbursement as early as November. But the lender has been slow to move forward when compared with other donors, according to Shmyhal.
Ukraine and the IMF are discussing a new support program.According to the NBU, Ukraine turned to the IMF with an official request to begin a new lending program. The main goal of the new program would cover the budget’s payment gap, ensure macroeconomic stability, and continue the implementation of structural economic reforms, including those aimed at Ukraine's acquisition of EU member status. According to the National Bank, there are active discussions within the IMF about which program format is most suitable for Ukraine. Also discussed was a change in the tools the IMF uses to support countries that are in need. The NBU hopes that, based on the results of these discussions, the IMF will provide information on the support format for Ukraine in under the current conditions.
The European Union will release €500mn in planned aid to Ukraine following a meeting between the EU-Ukraine Association Council and Ukrainian Prime Minister Denys Shmyhal in Brussels, Ukraine Business News reported on September 6. At the end of May, the EU pledged €9bn to Ukraine but has only delivered €1bn so far, leading to a precarious relationship between Kyiv and Brussels. Ukrainian President Volodymyr Zelenskiy accused the Union of blocking the much-needed funding, directing his frustrations at Berlin in particular.
EU states, except for Hungary, agree to provide 5bn euros in aid to Ukraine. EU economy ministers are expected to sign a political declaration in support of the macro-financial assistance package in Prague, Brussels-based publication Euractiv reported. The 5bn euro aid is part of the 9bn euro package announced in May.
IMF to discuss emergency funding to countries amid food price shocks due to war.According to Reuters, the plan under consideration could allow the International Monetary Fund (IMF) to draw an emergency fund for Ukraine and other countries affected by Russia's war without imposing conditions that would normally be required in a regular fund program. The plan will be discussed at an informal executive board meeting on Sept. 12, Reuters reported.
39 UKRAINE Country Report October 2022 www.intellinews.com