IMF agrees to open special account for sending money from donor countries to Ukraine

The Board of Directors of the International Monetary Fund (IMF) on Friday agreed to open a special administrative account for sending money from donor countries to help Ukraine, Deputy Executive Director from Ukraine at the IMF Vladyslav Rashkovan said.

"The Finance Ministry and I lobbied for this decision together with the government of Canada, but from the very beginning we also received support from the Netherlands, Poland and the Scandinavian and Baltic countries," he wrote on Facebook.

On Saturday night, the IMF also issued a press release on the decision of the Board of directors, at the request of several member countries, to approve the opening of a managed account for Ukraine, providing donors with a reliable tool for sending financial assistance.

According to Rashkovan, Deputy Prime Minister of Finance of Canada Chrystia Freeland in the Parliament of Canada, presenting the draft federal budget for 2022 (from July 1), said that the government will send up to 1 billion Canadian dollars (about $800 million) in support of the government of Ukraine through this account.

"This account is available for use by any other members, as well as intergovernmental agencies and organizations that wish to use it as a means to provide financial assistance to Ukraine," the Fund said.

Он He pointed out that this account is intended to direct donor resources in the form of grants and loans aimed at helping Ukraine to maintain its balance of payments and budget needs, as well as to help stabilize its economy.

"Donors will be able to use the proven infrastructure of the IMF for fast delivery of authenticated payments. The account will receive loans or grant resources from donors either in reserve currencies or in SDR, and transfer these resources to the SDR account of Ukraine in the IMF," the message says.

The Found also noted that its representatives continue to work closely with the Ukrainian authorities in their emergency response to the economic turmoil caused by the war.

Finance Minister Serhiy Marchenko said at the end of March that Ukraine was discussing with international partners a mechanism for distributing Special Drawing Rights (SDR) from the IMF unused by other countries.

As reported, in August last year, the IMF distributed an additional $650 billion between the SDR member countries, under which Ukraine received over $2.7 billion (SDR1.9 billion) in proportion to its quota in the Fund. By the beginning of the war, all these funds had already been spent by Ukraine.

Source: www.en.interfax.com.ua