1 month ago. Washington D.C., DC, USA

IMF to create special account for countries to make donations to Ukraine

IMF has approved to open a special account to allow countries to donate to Ukraine
The account had been approved at the request of several IMF member countries
Ukraine may receive the first large donation from the government of Canada

The International Monetary Fund (IMF) has approved to open a special account that will allow countries to donate securely to Ukraine as its war with Russia has surpassed the six-week mark.

In a statement released on Friday, the IMF Executive Board said that the account had been approved “at the request of several IMF member countries.” According to the organization, the account will "channel donor resources in the form of grants and loans" that should stabilize the country's economy, while donors will "benefit from the IMF's tested infrastructure to quickly deliver authenticated payments".

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Ukraine may receive the first large donation from the government of Canada, which played a key role in the creation of the account and has pledged a loan of 1 billion Canadian or approximately $796 million in US dollars, as part of its annual federal budget.

Vladyslav Rashkovan, alternate executive director for Ukraine at the IMF, wrote on Facebook, "$1 billion from Canada will be sent to help the Ukrainian Government through IMF tools. Today the IMF Board of Directors approved the opening of a special administrative account to transfer money from donor countries to aid Ukraine".

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"The Ministry of Finance and I lobbied for this decision together with the Canadian Government, and from the very beginning we also received support from the Netherlands, Poland, Scandinavia and Baltic countries," he added.

According to Reuters, the Canadian budget said that a big loan was needed to ensure that the Ukrainian government can continue to provide essential services. Canada is home to 1.4 million Ukrainians, the country's second-biggest diaspora after Russia.

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Speaking of the motivation to create the account and supply funds, Canadian Finance Minister Chrystia Freeland said it’s clear that the biggest danger in the world is the threat from Russian President Vladimir Putin, reported the Global and Mail. "In Bucha, we saw a regime that is truly criminal," she added.

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IMF to create special account for countries to make donations to Ukraine

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