The Executive Board of the International Monetary Fund has approved changes to internal rules so that the IMF will be able to issue loans to countries facing “exceptionally high uncertainty”, reports Archyde.com.
Changes in lending policy will apply to those countries that are experiencing “exogenous shocks beyond the control of the country’s authorities and their economic policies,” the IMF said in a statement. Previously, the rules of the fund did not allow the provision of loans to countries with a high level of uncertainty that arose, for example, due to war or natural disasters.
The essence of the changes is that the IMF will remove barriers for bilateral creditors and donors to repay the borrower’s debt. According to the agency, despite the fact that Ukraine was not mentioned in the fund’s statement, the changes in the rules are directly related to the IMF’s plans to provide a loan to the country. A Archyde.com source close to the negotiations said that the IMF and Ukraine will reach initial agreements on a new loan on March 21.
On March 16, the Financial Times (FT), citing sources, reported that the IMF had decided to approve a multi-year lending program for Ukraine. Its amount will be $15.6 billion. According to the Ministry of Finance of Ukraine, the draft budget for 2023 includes a deficit of $38 billion.
