The International Monetary Fund (IMF) has reached an agreement with Ukraine on funding worth $15.6bn. The loan which is expected to e approved in the coming weeks will be the organisation's first one to a country at war.
It would also be one of the largest financing packages Ukraine has received since Russia's invasion, BBC reports.
"A gradual economic recovery is expected over the coming quarters, as activity recovers from the severe damage to critical infrastructure, although headwinds persist, including the risk of further escalation in the conflict," IMF official Gavin Gray said in a statement announcing the agreement, Reuters reported.
The agreement comes after months of negotiations between IMF staff and Ukrainian authorities. It still needs to be ratified by the IMF's board. The board is expected to discuss it in the coming weeks.
According to Gray, the IMF staff expect the change in Ukraine's real gross domestic for 2023 to range from -3 per cent to +1 per cent.
"An ambitious and appropriately conditioned IMF program is critical to underpin Ukraine's reform efforts, including to strengthen good governance and address risks of corruption, and provide much needed financial support," U.S. Treasury Secretary Janet Yellen said.
