IMF may halt funding for Ukraine due to dispute within European Union, - Politico
Due to Belgium's position, the International Monetary Fund (IMF) may suspend aid to Ukraine.
According to Censor.NET, this was reported by Politico.
It is noted that due to Belgium's refusal to support the EU's €140 billion reparations loan, the IMF may postpone financial aid to Ukraine, which will affect its economic stability and investment climate.
Dependence on EU loans
European supporters of the reparations loan emphasise that the International Monetary Fund's support for Ukraine is crucial and fear that there is little time left to convince the institution to grant Kyiv a new loan.
According to reports, the IMF is considering providing Ukraine with $8 billion in financing over three years.
Receiving funds from the IMF depends on whether the European Union will be able to arrange its own loan for Ukraine in the amount of €140 billion, using frozen Russian assets located in Belgium.
Contradictions within the EU
Representatives of the European Commission and diplomats from three member states argue that the conclusion of this agreement will convince the IMF of Ukraine's financial viability in the coming years - a prerequisite for receiving funding.
However, Belgium opposed the reparations loan, undermining the chances of concluding the agreement before the IMF's decisive meeting in December. IMF experts will visit Kyiv in November to discuss Ukraine's financing programme for the next three years.
"We are facing a timeline issue," an EU representative told the publication.
The publication's sources indicated that the next meeting of EU leaders will take place on 18 and 19 December, which emphasised the need for quick decisions.
"While the size of the IMF’s program for Ukraine is relatively small, its approval signals to investors that the country is financially viable and on track with its reforms," the article says.
