(Bloomberg) -- The International Monetary Fund’s executive board approved the disbursal of $900 million in aid to Ukraine, and urged other countries and lenders to follow through on their pledges to a $122 billion international package announced earlier this year.
Read more: Zelenskiy in Washington to Rally US in Key Week for Alliance
IMF Managing Director Kristalina Georgieva announced the move Monday alongside Ukrainian President Volodymyr Zelenskiy, who is visiting Washington.
The Ukrainian president is in Washington to lobby US lawmakers to approve about $60 billion in US funds proposed by President Joe Biden, and earlier in the day warned that their gridlock over military aid only benefits Russian President Vladimir Putin.
“I would reiterate the criticality of the donors disbursing resources as promised, and in a timely and predictable manner,” Gavin Gray, the IMF’s Ukraine mission chief, said at a briefing Monday, without naming any countries. “Their support enables the authorities to maintain core functions to the state, including social spending to protect the most vulnerable segments of society. Without these resources, it will be hard to preserve the hard-won gains of macroeconomic and financial stability.”
Ukraine relies on international financial and military help as Russia’s invasion of the country heads into its second year. Increasing uncertainty over further funding from the US and the European Union has emerged as Ukraine’s counteroffensive has failed to deliver a decisive breakthrough after Russian forces built up strong defensive positions.
Read more: New Aid to Ukraine Drops to Lowest Level Since War Began
The IMF disbursement announced Monday comes at the completion of the so-called second review of the four-year, $15.6 billion Extended Fund Facility program approved in March, and follows a staff-level agreement last month.
Gray praised Ukraine’s progress on anti-corruption reforms and the enactment of legislation to restore asset declarations. The IMF on Monday also said that Ukraine in the first half of next year should pursue an “ambitious” external commercial debt restructuring to help restore debt sustainability.
--With assistance from Kateryna Chursina.
(Updates with comments from IMF official in fourth paragraph.)
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