Washington DC, 5 September 2022 (TDI): Ukraine commemorated the 30th anniversary of its membership in the International Monetary Fund (IMF) on September 3.

Since 1992, the IMF has systematically assisted Ukraine in fostering sustainable development and sustainable solutions to its challenges.

The results of Ukraine’s long-term coordinated cooperation with the fund entail approximately USD 37 billion in financial support within the framework of 13 cooperation programs.

Moreover, it also encompasses the implementation of numerous structural reforms in the areas of monetary and fiscal policy, bank, judicial and tax policy, customs, public administration, the fight against corruption, the land market, and medicine.

Preceding grants by IMF

About 18.26 billion USD in financial aid was given to Ukraine during the first 20 years of the partnership to cope with the country’s budget deficit, stabilize the value of the national currency, and restock foreign exchange reserves.

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In short, the groundwork for the nation’s robust financial system was laid. After 2014, when Russia’s war against Ukraine officially began and Ukrainians made the deliberate decision to stand with the developed world, cooperation with IMF advanced to a new level.

In that regard, the Fund showcased leadership in aiding the Ukrainian people and developed into a stabilizing force, keeping the financial structure of the state from imploding.

Furthermore, when the global financial crisis rocked the entire world in 2008, the Fund gave Ukraine an unprecedented loan of USD 10.6 billion (SDR 7 billion) at the time.

Also, Ukraine received two installments totaling USD 4.6 billion (SDR 2.97 billion) after the seizure of Crimea and the outbreak of the country’s eastern conflict.

Subsequently, Ukraine approved Extended Fund Facility, which allowed them to receive USD 8.7 billion (SDR 6.15 billion).

Ukraine was granted the maximum four tranches under this program, with the first tranche being the highest ever at almost USD 5 billion (SDR 3.55 billion).

Support for the falling economy 

The Executive Directors of the IMF voted to provide Ukraine USD 1.4 billion in funding as part of the Rapid Financing Instrument in March. Financial assistance made a vital contribution to reducing the invasion’s adverse economic impacts.

Moreover, with the assistance of the Fund, several financial sector reform initiatives have been put into action since 2015. These actions assisted in addressing the fallout from the 2014 financial crisis and in preserving macro-financial stability during a full-scale conflict.

Additionally, with the help of the Fund, and capital market reforms, Ukraine was able to develop a vibrant government capital market.

Foreign investors showed a lot of interest in government bonds before the onset of a full-scale conflict. Due to the sale of military bonds, the state budget was able to receive more than USD 4 billion during the war.

Ministry of Finance on 30th anniversary

Ministry of Finance Ukraine thanked IMF financial assistance combined with well-coordinated structural reforms implemented in recent years.

Furthermore, 30 years of the partnership were characterized by productive collaboration and served as a major catalyst for the development of the nation.

According to the Ministry, the road to recovery for Ukraine will be long, and likely the IMF will continue to play a significant role in securing Ukraine’s long-term destiny.

Also, it appreciated the International Monetary Fund’s many years of assistance and unwavering support throughout this crucial chapter in the country’s history.