IMF's Georgieva: Ukraine expected to see deep recession this year

YEREVAN, March 10, /ARKA/. The International Monetary Fund approved a $1.4 billion emergency loan for Ukraine to bolster the nation’s economy, citing severe human suffering and forecasting a deep recession this year after Russia’s invasion, Bloomberg reported.

The money, approved by the lender’s board on Wednesday, comes from the Rapid Financing Instrument, the IMF said in a statement. That means that it comes mostly without the conditions on the borrower country normally required by the fund.

While Ukraine’s growth outlook is subject to extraordinary uncertainty, the economic consequences of the war are already very serious, with more than 2 million refugees in less than two weeks and large-scale destruction of key infrastructure, the fund said.

“The Russian military invasion of Ukraine has been responsible for a massive humanitarian and economic crisis,” IMF Managing Director Kristalina Georgieva said in the statement. “The tragic loss of life, huge refugee flows, and immense destruction of infrastructure and productive capacity is causing severe human suffering and will lead to a deep recession this year. Financing needs are large, urgent, and could rise significantly as the war continues.”

The IMF and its board expressed its strong support and deepest sympathy for the Ukrainian people and will remain closely engaged with the nation’s authorities, Georgieva and the fund said. -0-