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War in Ukraine: IMF approves $1.4bn emergency funding

The International Monetary Fund (IMF) has approved $1.4 billion (£1.1 billion) in emergency aid to Ukraine fighting a Russian invasion.

The IMF predicts that Ukraine will experience a deep recession this year.

It is estimated that more than two million people have fled the country since the war began two weeks ago.

Earlier this week, the World Bank approved a $732 million financial package for Ukraine and plans to provide more economic aid in the coming months.

“The Russian military invasion of Ukraine was responsible for a massive humanitarian and economic crisis,” IMF Managing Director Kristalina Georgieva said in a statement.

Ms Georgieva said the money is aimed at meeting the country’s urgent spending needs and helping alleviate the huge economic impact of the war.

“The tragic loss of life, huge flows of refugees and the immense destruction of infrastructure and production capacities are causing severe human suffering and will lead to a deep recession this year. Funding needs are large, urgent, and could increase significantly as the war progresses. ” She added.

Funds will be disbursed under the IMF’s Rapid Financing Instrument. This means that it will largely do without the conditions that are usually imposed on borrowing countries.

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The IMF funding comes on top of a $723 million World Bank economic package announced earlier this week.

This package consisted of grants and loans, including a $100 million pledge from the UK.

The World Bank said it is continuing to work on a $3 billion support package for the coming months.

It also pledged additional aid to neighboring countries hosting the estimated 2 million refugees – who are mostly women, children and the elderly – fleeing Ukraine.

In recent days, the Ukrainian government has taken further steps to support its war-torn economy.

Last week, the country raised $270 million through the sale of war bonds and said it plans to issue non-fungible tokens to fund its armed forces.

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