Ukraine, IMF working toward deal on $890 million disbursement, source says

By Thomson Reuters Feb 21, 2024 | 3:29 PM

WASHINGTON (Reuters) – International Monetary Fund officials are negotiating with Ukrainian officials in Warsaw, Poland this week about a follow-on disbursement of $890 million from the country’s $15.6 billion loan, a source familiar with the process said on Wednesday.

Negotiations are ongoing, the source said, noting the IMF mission, which began on Saturday, ends on Thursday.

Movement on fresh IMF funds comes as the Republican-controlled U.S. House of Representatives continues to hold up some $61 billion in U.S. aid for Ukraine.

The Senate in a bipartisan vote earlier this month passed a $95 billion aid package that includes funds for Ukraine, but the measure is stalled in the House, which Republicans control by a narrow 219-212 margin.

Once a staff agreement is reached on the next tranche of IMF funds for Ukraine, it will be reviewed by IMF management and the executive board, with final approval likely in the second half of March, the source said.

Bloomberg reported earlier that the IMF was nearing an agreement on a new disbursement of $900 million.

An IMF spokesperson confirmed that an IMF staff team, led by Gavin Gray, was in Warsaw to carry out a third review of Ukraine’s loan Extended Fund Facility Arrangement, but declined to comment on the amount of a possible disbursement.

“The team will communicate at the end of mission,” the spokesperson said.

(Reporting by Disha Mishra in Bengaluru; Editing by Cynthia Osterman)