August M
Ukraine’s finances have received temporary relief after new funding from the International Monetary Fund. The assistance is expected to keep the country solvent for several weeks as European leaders struggle to agree on a much larger support package.
The IMF approved an $8.1 billion loan program late last month and immediately released $1.5 billion, according to reporting by Politico.
People familiar with Kyiv’s finances told the outlet that the payment should allow Ukraine to meet its obligations until early May.
Earlier estimates had suggested the government could run out of money by the end of March, increasing pressure on European partners to finalize additional support.
EU loan dispute
The European Union has been working on a €90 billion loan intended to help finance Ukraine’s needs through 2027.
However, the package remains stalled because it requires approval from all EU member states before funds can be released.
Hungarian Prime Minister Viktor Orbán and Slovak Prime Minister Robert Fico have raised objections to the plan, creating uncertainty ahead of a summit of EU leaders in Brussels next week.
EU Economy Commissioner Valdis Dombrovskis acknowledged the political difficulty but indicated the bloc remains determined to deliver the funding.
“It’s not the first time we are facing a similar kind of difficulties with Hungary,” he said. “We will deliver on this loan one way or another.”
Backup funding option
As negotiations continue, several EU countries are discussing ways to support Ukraine directly if the larger loan remains blocked.
According to diplomats cited by Politico, Nordic and Baltic governments are considering bilateral loans that could keep Ukraine financed in the near term.
One person familiar with the talks said Kyiv could require up to €30 billion in such assistance to maintain financial stability until September.
Because bilateral loans are arranged between individual governments, they would not require unanimous approval from EU member states.
Diplomats say the option is being treated as a contingency plan if the EU-wide package cannot move forward.
Sources: Politico
