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IMF chief Georgieva and Zelenskiy talked ways to boost Ukraine’s support

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IMF chief Georgieva,

IMF chief Georgieva, Zelenskiy talked ways to boost support

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  • Kristalina Georgieva, head of the International Monetary Fund, spoke with Ukraine’s President Volodymyr Zelenskiy.
  • The pair discussed ways to increase the IMF’s financial and policy engagement with Ukraine.
  • If approved, staff proposal would grant Ukraine access to an additional $1.4 billion in emergency aid.
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Kristalina Georgieva, the head of the International Monetary Fund, said she spoke with Ukraine’s President Volodymyr Zelenskiy on Tuesday and they agreed to look into ways to increase the IMF’s support for Ukraine using all available tools.

“Excellent call with President @ZelenskyyUa,” Georgieva wrote on Twitter. She said they discussed how the global lender could “continue to back Ukraine and agreed to explore ways to ramp up our financial and policy engagement to (Ukraine) using all tools available to us.”

The request came a day after the IMF’s executive board met informally to discuss proposed changes that would grant all member countries, including Ukraine, access to additional emergency funding to deal with budget problems caused by food shocks.

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Zelenskiy said in a separate tweet that he spoke with Georgieva and thanked her for “allocating $1.4 billion in additional support. Discussed future cooperation to increase Ukraine’s financial stability.”

It was unclear whether Zelenskiy was referring to the staff proposal discussed by the IMF board on Monday, which, if approved, would give Ukraine access to an additional $1.4 billion in emergency aid on top of the $1.4 billion it received in March.

Zelenskiy and other Ukrainian officials are urging the IMF to provide far more financial assistance through a full-fledged programme as soon as possible.

Kyrylo Shevchenko, Ukraine’s central bank governor, told Reuters in July that Kyiv was seeking $15-20 billion from the IMF over two or three years, an amount that would put Ukraine well above the fund’s “exceptional access limit” for lending.

However, Oleg Ustenko, Zelenskiy’s senior economic adviser, later told Reuters that even a $5 billion IMF loan spread over 18 months could help facilitate a larger package from other creditors.

Prime Minister Denys Shmyhal, speaking through an interpreter, told a press conference on Sunday that the IMF had been “very passive” in responding to Ukraine’s request so far.

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He claimed that the fund loaned Ukraine $17 billion following Russia’s annexation of the Crimean peninsula in 2014, but that it was dragging its feet this time.

“Now we have a certain procrastination, but we have to speed up our cooperation and the response of the IMF, which was created to support countries in dire straits like we find ourselves in,” he said.

He stated that Ukraine was cooperating closely with the US, Germany, and other partners, but that the IMF was an important “uniting factor.”

“It’s very important to have the IMF on board with their leadership and partnership,” he added.

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