IMF agreement could give Ukraine access to $1.1b

SAN FRANCISCO, Sept 11 (AFP): The International Monetary Fund (IMF) late Tuesday said it has reached an agreement with Ukraine on an aid programme review that could open the door to $1.1 billion for the war-battered country.

A staff-level agreement on the fifth review of the four-year Extended Fund Facility Agreement, subject to approval by the IMF executive board, would clear the way for Ukraine to access the money, according to the IMF.

It would raise to $8.7 billion the amount of funds dispersed so far to Ukraine as part of an IMF program tallying about $15.6 billion.

"Russia's war in Ukraine continues to have a devastating impact on the country and its people," IMF team leader Gavin Gray said in a release.

"Skillful policymaking, the adaptability of households and firms, and robust external financing has helped support macroeconomic and financial stability."

Real gross domestic product grew 6.5 per cent in Ukraine in the first quarter of this year, while inflation in July was deemed low at 5.4 per cent year-over-year, according to the IMF.

Gray noted that an economic slowdown is expected in Ukraine due to repeated attacks on its energy infrastructure and the effect of the war on labor markets and overall confidence.