IMF calls for financial assistance: Ukraine is at risk of economic instability

According to the head of the International Monetary Fund (IMF), Kristalina Georgieva, Ukraine urgently needs tens of billions of dollars in funding from its Western partners. Delays in this matter threaten the recovery of the Ukrainian economy, and Georgieva urges the West to provide assistance "quickly", emphasizing the need to avoid destabilizing policies such as money printing.

The IMF chief expressed appreciation for the measures taken by the Ukrainian authorities to restore the economy, curb inflation and strengthen the tax base. However, it is emphasized that further delays in financing may force Kyiv to look for alternative ways, including printing money.

Georgieva expresses optimism that Ukraine will receive the necessary funds, but notes that it is important to avoid prolonging this period and putting pressure on the country at a time when its economy is returning to its best prospects.

While the IMF is calling for rapid funding, National Bank of Ukraine (NBU) Governor Andriy Pyshny warns of the risks of a reduction in financial assistance in 2024. According to him, the uncertainty about receiving international support increases risks, and the situation may become more complicated in the first quarter of 2024 without funding from international partners.

In particular, Hungarian Prime Minister Viktor Orban's recent veto of €50 billion in EU funds to Ukraine and the failure of a procedural vote in the US Senate to allocate $110 billion in aid could complicate Ukraine's financial situation.

According to the head of the NBU, Ukraine has some flexibility and can survive January and February thanks to payments from the IMF, the World Bank, and domestic loans. However, it is important to take into account the risks and work to ensure the stability of the country's financial sector.

Ukraine, which has received support from many Western countries in countering Russian aggression, is now facing difficulties in obtaining financial assistance, which is worrying in the context of important international challenges and electoral processes.