FX.co ★ U.S. Backs IMF and EU Loan Initiatives to Support Ukraine

The United States has expressed its support for a new International Monetary Fund (IMF) lending program aimed at assisting Ukraine, as well as the European Union's initiative to provide Kyiv with a loan backed by frozen Russian central bank assets. This was announced by EU Economic Commissioner Valdis Dombrovskis following his meeting with U.S. Treasury Secretary Scott Bessent in Washington. Dombrovskis highlighted the "constructive engagement" from the U.S. and indicated that Washington is generally supportive of their proposal concerning the reparation loan. However, he noted that the U.S. has not yet established a definitive position on how to manage the approximately USD 5 billion in Russian assets frozen within its jurisdiction, in contrast to the roughly EUR 210 billion immobilized in Europe. U.S. support is crucial for the IMF’s forthcoming loan to Ukraine, given the Fund’s general policy of avoiding lending to war-torn countries unless there are secured assurances for repayment.