The International Monetary Fund (IMF) may suspend financial support for Ukraine due to Belgium’s position. This is reported by Politico.
Belgium has refused to support the EU’s reparations loan of 140 billion euros. This decision could lead to a delay in IMF assistance, which would jeopardize Ukraine’s economic stability and negatively affect the investment climate.
European supporters of the reparations mechanism emphasize that IMF support for Ukraine is critically important. They are concerned that there is very little time left to convince the fund to provide Kyiv with a new loan.
According to preliminary data, the IMF is considering providing Ukraine with financing in the amount of about $8 billion over three years. However, obtaining these funds directly depends on whether the European Union can arrange its own loan for Ukraine for 140 billion euros, using frozen Russian assets stored in Belgium.
European Commission representatives and diplomats from the three member states note that the conclusion of a corresponding agreement will be a signal to the IMF about Ukraine’s financial capacity in the medium term, which is a key condition for the allocation of funds. However, Belgium’s resistance has significantly reduced the chances of approval of the agreement before the December IMF meeting. A Fund mission is expected to visit Kyiv in November to discuss the financing program for the next three years.
The next meeting of European Union leaders is scheduled for December 18-19, which emphasizes the need to make urgent decisions to ensure the continuity of international support for Ukraine.
