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.
IMF approves $2.2bn disbursement to Ukraine after loan review
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IMF approves $2.2bn disbursement to Ukraine after loan review
New Trump strategy vows shift from global role to regional
WASHINGTON: President Donald Trump’s administration said in a long-awaited new strategy document Friday that the United States will shift from its historic global role toward increasing dominance in Latin America and vigorously fighting migration.
The national security paper, meant to flesh out Trump’s norms-shattering “America First” worldview, signals a sharp reorientation from longstanding US calls to refocus on Asia, although it still identifies China as a top competitor.
The strategy also brutally criticized allies in Europe and said that the United States will champion opponents to European Union-led values, including on immigration.
Breaking with decades of attempts to be the sole superpower, the strategy said that the “United States rejects the ill-fated concept of global domination for itself.”
It said that the United States would also prevent other powers from dominating but added: “This does not mean wasting blood and treasure to curtail the influence of all the world’s great and middle powers.”
The strategy called for a “readjustment of our global military presence to address urgent threats in our Hemisphere, and away from theaters whose relative import to American national security has declined in recent decades or years.”
The strategy speaks in bold terms of pressing US dominance in Latin America, where the Trump administration has been striking alleged drug traffickers at sea, intervening to bring down leftist leaders including in Venezuela, and loudly seeking to take charge of key resources such as the Panama Canal.
The strategy cast Trump as modernizing the two-century-old Monroe Doctrine, in which the then young United States declared Latin America off-limits to rival powers, then from Europe.
“We will assert and enforce a ‘Trump Corollary’ to the Monroe Doctrine,” it said.
- Championing Europe ‘resistance’ -
Trump has sharply reversed many longstanding US principles since returning to office in January.
He rose to political prominence demanding sweeping curbs on immigration to the United States, fanning fears that the white majority was losing its status, and since taking office has ordered drastic and high-profile raids to deport undocumented people.
“The era of mass migration must end. Border security is the primary element of national security,” the strategy said.
The strategy made clear that the United States under Trump would aggressively pursue similar objectives in Europe, in line with far-right parties that have made strong gains in much of the continent.
In extraordinary language in speaking of close allies, the strategy said: “Cultivating resistance to Europe’s current trajectory within European nations.”
Germany quickly hit back, saying that it does not need “outside advice.”
The strategy pointed to Europe’s lower share of the global economy — which is the result largely of the rise of China and other emerging powers — and said: “This economic decline is eclipsed by the real and more stark prospect of civilizational erasure.
“Should present trends continue, the continent will be unrecognizable in 20 years or less.”
As Trump seeks an end to the Ukraine war that would likely favor Russia gaining territory, the strategy accused Europeans of weakness and said the United States should focus on “ending the perception, and preventing the reality, of NATO as a perpetually expanding alliance.”
- Less on Middle East and Africa -
The strategy paid comparatively little attention to the Middle East, which has long consumed Washington.
Pointing to US efforts to increase energy supply at home and not in the oil-rich Gulf, the strategy said: “America’s historic reason for focusing on the Middle East will recede.”
The paper said it was a US priority for Israel to be secure, but stopped short of the fulsome language on Israel used even in the first Trump administration.
On China, the strategy repeated calls for a “free and open” Asia-Pacific region but focused more on the nation as an economic competitor.
After much speculation on whether Trump would budge on Taiwan, the self-ruling democracy claimed by Beijing, the strategy made clear that the United States supports the decades-old status quo, but called on allies Japan and South Korea to contribute more to ensure Taiwan’s defense from China.
The strategy predictably puts little focus on Africa, saying the United States should transition away from “liberal ideology” and an “aid-focused relationship” and emphasize goals such as securing critical minerals.
The national security paper, meant to flesh out Trump’s norms-shattering “America First” worldview, signals a sharp reorientation from longstanding US calls to refocus on Asia, although it still identifies China as a top competitor.
The strategy also brutally criticized allies in Europe and said that the United States will champion opponents to European Union-led values, including on immigration.
Breaking with decades of attempts to be the sole superpower, the strategy said that the “United States rejects the ill-fated concept of global domination for itself.”
It said that the United States would also prevent other powers from dominating but added: “This does not mean wasting blood and treasure to curtail the influence of all the world’s great and middle powers.”
The strategy called for a “readjustment of our global military presence to address urgent threats in our Hemisphere, and away from theaters whose relative import to American national security has declined in recent decades or years.”
The strategy speaks in bold terms of pressing US dominance in Latin America, where the Trump administration has been striking alleged drug traffickers at sea, intervening to bring down leftist leaders including in Venezuela, and loudly seeking to take charge of key resources such as the Panama Canal.
The strategy cast Trump as modernizing the two-century-old Monroe Doctrine, in which the then young United States declared Latin America off-limits to rival powers, then from Europe.
“We will assert and enforce a ‘Trump Corollary’ to the Monroe Doctrine,” it said.
- Championing Europe ‘resistance’ -
Trump has sharply reversed many longstanding US principles since returning to office in January.
He rose to political prominence demanding sweeping curbs on immigration to the United States, fanning fears that the white majority was losing its status, and since taking office has ordered drastic and high-profile raids to deport undocumented people.
“The era of mass migration must end. Border security is the primary element of national security,” the strategy said.
The strategy made clear that the United States under Trump would aggressively pursue similar objectives in Europe, in line with far-right parties that have made strong gains in much of the continent.
In extraordinary language in speaking of close allies, the strategy said: “Cultivating resistance to Europe’s current trajectory within European nations.”
Germany quickly hit back, saying that it does not need “outside advice.”
The strategy pointed to Europe’s lower share of the global economy — which is the result largely of the rise of China and other emerging powers — and said: “This economic decline is eclipsed by the real and more stark prospect of civilizational erasure.
“Should present trends continue, the continent will be unrecognizable in 20 years or less.”
As Trump seeks an end to the Ukraine war that would likely favor Russia gaining territory, the strategy accused Europeans of weakness and said the United States should focus on “ending the perception, and preventing the reality, of NATO as a perpetually expanding alliance.”
- Less on Middle East and Africa -
The strategy paid comparatively little attention to the Middle East, which has long consumed Washington.
Pointing to US efforts to increase energy supply at home and not in the oil-rich Gulf, the strategy said: “America’s historic reason for focusing on the Middle East will recede.”
The paper said it was a US priority for Israel to be secure, but stopped short of the fulsome language on Israel used even in the first Trump administration.
On China, the strategy repeated calls for a “free and open” Asia-Pacific region but focused more on the nation as an economic competitor.
After much speculation on whether Trump would budge on Taiwan, the self-ruling democracy claimed by Beijing, the strategy made clear that the United States supports the decades-old status quo, but called on allies Japan and South Korea to contribute more to ensure Taiwan’s defense from China.
The strategy predictably puts little focus on Africa, saying the United States should transition away from “liberal ideology” and an “aid-focused relationship” and emphasize goals such as securing critical minerals.
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