Ukraine needs $ 5 billion a month to cover essential government services and keep its economy functioning. Kristalina Georgieva, IMF's Managing Director, cited the forecast of the Ministry of Finance of Ukraine on the eve of this week's meeting between the IMF and the World Bank, reports The Wall Street Journal.
The budget deficit is the result of a drop in the country's tax revenues to about half of the pre-war level.
In its forecast for the world economy, the IMF predicts that Ukraine's economy will shrink by 35% this year. And even if the war ends soon, the damage already done will seriously damage the country's economic activity for many years.
Kristalina Georgieva noted that the IMF is working with member countries to provide funding through various channels to support Ukraine, prioritizing grants from donor countries over loans that need to be repaid.
Financial support for countries affected by the war in Ukraine is one of the main topics for finance and central bank ministers meeting in Washington. Representatives of the IMF and the World Bank are expected to discuss short- and long-term assistance to Ukraine on Thursday, April 21, with Ukrainian Prime Minister Denis Shmygal and Finance Minister Serhiy Marchenko.
In March, the IMF provided an emergency loan of 1.4 billion USD to Ukraine.
The World Bank has approved the provision of about 1.5 billion USD to Ukraine.