According to the International Monetary Fund, Ukraine needs an additional $15 billion to overcome the current financial difficulties, Britain’s Financial Times newspaper has reported.
“The International Monetary Fund has identified a $15 billion shortfall in its bailout for war-torn Ukraine and warned western governments the gap will need to be filled within weeks to avoid financial collapse… The additional cash needed would come on top of the $17 billion IMF rescue announced in April and due to last until 2016,” reads the report.
According to the newspaper’s sources, the fiscal gap has opened up because of a 7% contraction in Ukraine’s gross domestic product and a collapse in exports to Russia, leading to massive capital outflows and a rundown in central bank reserves.
According to the report, senior western officials said there is only tepid support for such a sizeable increase in the program. The IMF’s calculations lay bare the perilous state of Ukraine’s economy and hint at the financial burden of propping up Kyiv as it battles Russian-backed separatist rebels in its eastern regions.
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