What is the IMF? UN organisation to loan Ukraine £12.8 billion

Seren Morris
·2-min read
The International Monetary Fund (IMF) headqyarters in Washington (Reuters)
The International Monetary Fund (IMF) headqyarters in Washington (Reuters)

The International Monetary Fund (IMF) has agreed to give Ukraine £12.8 billion to help support their recovery following Russia’s invasion.

The IMF’s loan will also go towards Ukraine’s “reovery on the path toward EU accession”, after it applied in February 2022.

The loan, which is expected to be approved in the coming weeks, will be the IMF’s first to a country at war.

Mr Gavin Gray, who led the IMF team who made the decision, said in a statement: “The overarching goals of the authorities’ programme are to sustain economic and financial stability in circumstances of exceptionally high uncertainty, restore debt sustainability, and support Ukraine’s recovery on the path toward EU accession in the post-war period.

“The programme has been designed in line with the new Fund’s policy on lending under exceptionally high uncertainty, and strong financing assurances are expected from donors, including the G7 and EU.”

Ukraine War | One Year Anniversary - pictures

Ukrainian President Volodymyr Zelensky attends a commemorative event on the occasion of the Russia Ukraine war one year anniversary (AP)
Ukrainian President Volodymyr Zelensky attends a commemorative event on the occasion of the Russia Ukraine war one year anniversary (AP)
The Prime Minister observes a minute’s silence for Ukraine (Simon Walker/No10 Downing Street)
The Prime Minister observes a minute’s silence for Ukraine (Simon Walker/No10 Downing Street)
Ukrainian President Volodymyr Zelensky, left, holds the flag of a military unit as an officer kisses it, during commemorative event on the occasion of the Russia Ukraine war one year anniversary in Kyiv (AP)
Ukrainian President Volodymyr Zelensky, left, holds the flag of a military unit as an officer kisses it, during commemorative event on the occasion of the Russia Ukraine war one year anniversary in Kyiv (AP)
Ukrainian Ambassador to the UK, Vadym Prystaiko and his wife Inna lighting some of the 52 candles - one for each week of the war - during an ecumenical prayer service at the Ukrainian Catholic Cathedral in London, to mark the one year anniversary of the Russian invasion of Ukraine (PA)
Ukrainian Ambassador to the UK, Vadym Prystaiko and his wife Inna lighting some of the 52 candles - one for each week of the war - during an ecumenical prayer service at the Ukrainian Catholic Cathedral in London, to mark the one year anniversary of the Russian invasion of Ukraine (PA)
Ukrainian teenager, Alisa Bushuieva, who was forced to flee her country with her mother, Svitlana, in February last year, after playing piano to the crowd following a minute’s silence at Peter’s Lane in Liverpool ONE, to mark the one-year anniversary of the Russian invasion of Ukraine (PA)
Ukrainian teenager, Alisa Bushuieva, who was forced to flee her country with her mother, Svitlana, in February last year, after playing piano to the crowd following a minute’s silence at Peter’s Lane in Liverpool ONE, to mark the one-year anniversary of the Russian invasion of Ukraine (PA)
Britain’s Prime Minister Rishi Sunak and his wife Akshata Murthy, Ukrainian Ambassador to UK Vadym Prystaiko and wife Inna Prystaiko observe a minute’s silence to mark the one year anniversary of Russia’s invasion of Ukraine, (REUTERS)
Britain’s Prime Minister Rishi Sunak and his wife Akshata Murthy, Ukrainian Ambassador to UK Vadym Prystaiko and wife Inna Prystaiko observe a minute’s silence to mark the one year anniversary of Russia’s invasion of Ukraine, (REUTERS)
A Ukrainian themed Wreath to mark the one year anniversary of the Russian invasion of Ukraine sits on the door of 10 Downing Street. (Simon Dawson / No10 Downing Street)
A Ukrainian themed Wreath to mark the one year anniversary of the Russian invasion of Ukraine sits on the door of 10 Downing Street. (Simon Dawson / No10 Downing Street)
Former prime minister Boris Johnson lights one of 52 candles - one for each week of the war - during an ecumenical prayer service at the Ukrainian Catholic Cathedral in London, to mark the one year anniversary of the Russian invasion of Ukraine (PA)
Former prime minister Boris Johnson lights one of 52 candles - one for each week of the war - during an ecumenical prayer service at the Ukrainian Catholic Cathedral in London, to mark the one year anniversary of the Russian invasion of Ukraine (PA)
Ukraine’s President Volodymyr Zelenskiy attends a ceremony dedicated to the first anniversary of the Russian invasion of Ukraine, amid Russia’s attack on Ukraine, in Kyiv (via REUTERS)
Ukraine’s President Volodymyr Zelenskiy attends a ceremony dedicated to the first anniversary of the Russian invasion of Ukraine, amid Russia’s attack on Ukraine, in Kyiv (via REUTERS)
Ukrainian volunteer recruits leave the parade ground after taking part in prayers, blessings and a one minute silence to mark the first anniversary of the 2022 Russian Invasion of Ukraine, on February 24, 2023 in South East England (Getty Images)
Ukrainian volunteer recruits leave the parade ground after taking part in prayers, blessings and a one minute silence to mark the first anniversary of the 2022 Russian Invasion of Ukraine, on February 24, 2023 in South East England (Getty Images)
President of the European Commission Ursula von der Leyen attends wreath-laying ceremony at the War of Independence Victory Column during Independence Day celebrations in Tallinn, Estonia (REUTERS)
President of the European Commission Ursula von der Leyen attends wreath-laying ceremony at the War of Independence Victory Column during Independence Day celebrations in Tallinn, Estonia (REUTERS)

What is the IMF?

The IMF is a United Nations (UN) agency and international financial institution based in Washington DC. It was established in 1944 following the Great Depression of the 1930s.

It was founded by 44 founding nations, and today its aim is to achieve sustainable growth for its 190 member countries by promoting economic policies.

The agency plays a key role in stabilising the global economy and acts as an early economic-warning system.

Its resources come from the money that member countries pay as their capital subscription. Countries pay an assigned quota based on their position in the world economy, which they can then borrow from when they fall into financial difficulty.

The IMF provides loans to member countries to help them “rebuild their international reserves, stabilise their currencies, continue paying for imports, and restore conditions for strong economic growth, while correcting underlying problems.”

It also monitors the international monetary system and global economic developments to identify risks and recommended policies, and provides training and assistance to central banks and finance ministries.

The IMF has $1 trillion available for lending and currently has 34 lending arrangements, with 76 countries in receipt of emergency pandemic financing.