IMF approves USD 1.4 billion in emergency financing for Ukraine

The International Monetary Funds has approved USD 1.4 billion in emergency financing for Ukraine amid the ongoing war with Russia, the fund said in a statement.

"The Executive Board of the International Monetary Fund (IMF) today approved a disbursement of USD 1.4 billion (SDR 1005,9 million) under the Rapid Financing Instrument (RFI) to help meet urgent financing needs and mitigate the economic impact of the war," Russia's Sputnik News Agency reported citing the statement.

On Monday, the World Bank approved a USD 723 million package of loans and grants for Ukraine, providing government budget support amid the all-out conflict with Russia.

The international lender approved a supplemental budget support package for Ukraine, called Financing of Recovery from Economic Emergency in Ukraine - or FREE Ukraine - for USD 489 million, the bank said in a statement.

"The package approved by the Board consists of a supplemental loan for USD 350 million and guarantees in the amount of USD 139 million and is also mobilizing grant financing of USD 134 million and parallel financing of USD 100 million, resulting in total mobilized support of USD 723 million," it added.

The bank informed that the initial World Bank support was increased with guarantees from the Netherlands for 80 million euros (USD 89 million equivalent) and Sweden for USD 50 million.

The World Bank has also set up a multi-donor trust fund (MDTF) to facilitate channeling grant resources from donors to Ukraine, with contributions from the UK, Denmark, Latvia, Lithuania, and Iceland in the amount of USD 134 million thus far.

The World Bank is calling for further grant contributions to the MDTF. In addition, Japan is linking USD 100 million in parallel financing to the support package.

( With inputs from ANI )