Allies pressure the IMF to provide Ukraine with a new $14-16B program.

According to the FT, IMF representatives plan to meet Ukrainian officials in Warsaw in mid-February to discuss the loan terms. The fund is considering the possibility of launching a program for $14-16B for a period of three to four years. Ukraine estimates the 2023 state budget deficit at $38B. The EU’s €18B and the US’s $9.9B will cover most of this amount, but there remains an additional $10B gap. “We expect that other international donors, including the G7 and international financial institutions, will cover the remaining financing needs,” said European Commission Vice President Valdis Dombrovskis. The US is also pushing the IMF to provide new financial aid to Ukraine quickly. “The United States calls on the IMF and Ukraine to work together as soon as possible to agree on the program,” US officials encouraged.