WASHINGTON: The International Monetary Fund on Friday said its executive board approved a $2.2 billion disbursement to Ukraine for budget support and urged external donors to keep up support for the war-torn country amid a deteriorating economic outlook.
The IMF’s approval of the fourth review of the four-year, Extended Fund Facility brings total disbursements to $7.6 billion, nearly half of the $15.6 billion program approved in March 2023.
The IMF said in a statement that Ukraine’s performance under the extended fund facility program remains strong despite challenging conditions, with quantitative targets met and structural benchmarks implemented on time or with a short delay.
While Ukraine’s economy performed strongly during the first quarter of 2024, the outlook for the second half of 2024 and into 2025 has deteriorated, amid increased Russian attacks on Ukraine’s power infrastructure and deteriorating consumer and business sentiment as the war evolves.
The fund adjusted downward its 2024 GDP growth forecast for Ukraine to a range of 2.5-3.5 percent, compared to a prior forecast of 3.2 percent in the April World Economic Outlook.
The IMF program is part of a package of external support, mostly from donor countries that it estimates at about $122 billion over the four-year program window. The IMF said a downside scenario would require $141 billion in external financing.
Neither estimate includes the potential proceeds from a
$50 billion loan
that the G7 industrial democracies have agreed to grant Ukraine, backed by the earnings from frozen Russian assets, said Gavin Gray, the IMF’s Ukraine mission chief.
Gray told reporters that the IMF would reassess Ukraine’s financing framework should the loan be completed, but it was important that the use of Russian assets has “sufficient legal underpinnings” and does not undermine the functioning of the global financial system.
“Above all, continued support from all external partners is essential for Ukraine to sustain the progress on growth and stability, which has been achieved over the past year,” Gray said. “Without these resources, the hard-won macro-stabilization gains could be jeopardized.”
Gray said that he did not expect the weaker economic outlook to have a material impact on Ukraine’s negotiations with bondholders to restructure its debt, which are based on a medium-term framework that remains largely unchanged. He added that there have recently been “intensifying discussions” with bondholders and the IMF expects a completion of the negotiations in coming weeks.
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IMF approves $2.2bn disbursement to Ukraine after loan review
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IMF approves $2.2bn disbursement to Ukraine after loan review
Taiwan says China deploys warships in ‘military operations’
TAIPEI: Taiwan said Friday that China had deployed warships for “military operations” stretching hundreds of kilometers from the Yellow Sea to the South China Sea, posing a “threat” to the region.
Beijing, which claims self-ruled Taiwan as part of its territory, neither confirmed nor denied the maneuvers.
Taiwan’s defense ministry and other security agencies were monitoring China’s activities and had a “complete grasp of the situation,” presidential office spokeswoman Karen Kuo told reporters.
She did not say how many Chinese ships were involved in the deployment, but a security source told AFP the number was “significant.” The source spoke on condition of anonymity because they were not authorized to speak to the media.
The operations were not limited to the Taiwan Strait, but extended from the southern Yellow Sea, to the East China Sea near the disputed Diaoyu Islands and on into the South China Sea and even the Western Pacific, Kuo said.
“This indeed poses a threat and impact on the Indo-Pacific and the entire region,” she said.
Taiwan urged China to “exercise restraint,” Kuo said, adding: “We are also confident that we can handle this matter well.”
Neither China’s armed forces nor state media have announced any increased military activity in the region where Taiwan said Chinese ships had been detected.
Beijing’s foreign ministry did not answer directly when asked if the military was amassing a large number of naval vessels in those waters.
“I want to emphasize that China has consistently followed a defensive policy,” spokesman Lin Jian told a regular press briefing.
“The Chinese navy and coast guard strictly operate in relevant waters according to Chinese domestic law and international law,” Lin said.
He urged “relevant parties” not to “overreact or... engage in groundless hype.”
China has refused to rule out using force to take Taiwan, and also claims contentious sovereignty over nearly all of the South China Sea.
Taiwan’s intelligence chief Tsai Ming-yen said Wednesday that October to December was the “peak season” for China’s “annual evaluation exercises.”
There was a possibility that China’s ruling Communist Party could turn seemingly routine military activities into drills targeting Taiwan, Tsai warned.
Beijing, which claims self-ruled Taiwan as part of its territory, neither confirmed nor denied the maneuvers.
Taiwan’s defense ministry and other security agencies were monitoring China’s activities and had a “complete grasp of the situation,” presidential office spokeswoman Karen Kuo told reporters.
She did not say how many Chinese ships were involved in the deployment, but a security source told AFP the number was “significant.” The source spoke on condition of anonymity because they were not authorized to speak to the media.
The operations were not limited to the Taiwan Strait, but extended from the southern Yellow Sea, to the East China Sea near the disputed Diaoyu Islands and on into the South China Sea and even the Western Pacific, Kuo said.
“This indeed poses a threat and impact on the Indo-Pacific and the entire region,” she said.
Taiwan urged China to “exercise restraint,” Kuo said, adding: “We are also confident that we can handle this matter well.”
Neither China’s armed forces nor state media have announced any increased military activity in the region where Taiwan said Chinese ships had been detected.
Beijing’s foreign ministry did not answer directly when asked if the military was amassing a large number of naval vessels in those waters.
“I want to emphasize that China has consistently followed a defensive policy,” spokesman Lin Jian told a regular press briefing.
“The Chinese navy and coast guard strictly operate in relevant waters according to Chinese domestic law and international law,” Lin said.
He urged “relevant parties” not to “overreact or... engage in groundless hype.”
China has refused to rule out using force to take Taiwan, and also claims contentious sovereignty over nearly all of the South China Sea.
Taiwan’s intelligence chief Tsai Ming-yen said Wednesday that October to December was the “peak season” for China’s “annual evaluation exercises.”
There was a possibility that China’s ruling Communist Party could turn seemingly routine military activities into drills targeting Taiwan, Tsai warned.
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