The International Monetary Fund (IMF) has set up a special new account to provide bilateral donors and international organisations a secure way to donate funds to Ukraine. The IMF’s executive board approved the creation of the new account after the Canadian government offered over 1 billion Canadian dollars through the vehicle, which the IMF would handle. The account will allow donors to contribute grants and loans to help the Ukrainian government meet its balance of payments and budgetary requirements and stabilise its economy as it fights against Russia’s deadly invasion.

Ukrainian Finance Minister Serhiy Marchenko had said that his administration was seeking about 4 billion euros in foreign financing to deal with a budget shortfall. Last month, IMF staff had forecasted that Ukraine’s economy could collapse by 10 per cent in 2022 because of the invasion but warned that the outlook could worsen sharply if the conflict continues. IMF staff are working closely with the authorities on their emergency response to the economic disruptions caused by the war in Ukraine, the IMF said.