IMF opens account to channel donor funds to Ukraine

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The IMF has opened an account to channel funds from donors to Ukraine, as nations opposed to Russia’s invasion seek to exert further pressure on Moscow.

The account, which was approved by the lender’s board of directors on Friday evening, will receive grants and loans “aimed at assisting Ukraine to meet its balance of payments and budgetary needs and help stabilise its economy”, the IMF said in a statement.

The aid, which will be disbursed directly into Ukraine’s account at the fund, can be denominated in either reserve currencies or special drawing rights, a form of reserve asset that in effect constitutes newly minted money.

“Donors will benefit from the IMF’s tested infrastructure to quickly deliver authenticated payments,” the fund added.

Canada’s government proposed up to $795mn to be allotted to the account as part of its latest federal budget, the fund said, an amount that is available for use by any other members as well…

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