By Gokhan Ergocun
ISTANBUL (AA) - The IMF and Ukraine agreed on a financing deal worth $400 million, according to a statement Friday.
The deal was reached as part of the Seventh Review of the four-year, $15.5 billion Extended Fund Facility (EFF) Arrangement, the IMF stated.
The Ukrainian economy has continued to show resilience despite challenges from three years of war with Russia, Gavin Gray, assistant director at the IMF, said in the statement.
"Real GDP growth is estimated at 3.5 percent for 2024, but is expected to moderate to 2-3 percent in 2025, reflecting headwinds from labor constraints, damage to energy infrastructure, and the persistence of Russia’s war in Ukraine," he said.
The annual inflation has continued to rise, reaching 12.9% in January, mainly due to rising food and labor costs in the country, he said.
Saying that developing the financial markets infrastructure will be critical to support prompt reconstruction and recovery by facilitating much-needed private investment, including attracting foreign capital, he noted that comprehensive consultation and collaboration with financial market participants are essential to facilitate the preparation of a prioritized reform agenda.