As Ukraine enters a third year of war, the international development agency Christian Aid says the International Monetary Fund (IMF) should suspend surcharge payments on Kyiv’s outstanding loans so money can be better directed to pay for urgent humanitarian needs instead.
The charity, which has been operating in Ukraine since Russia’s full-scale invasion in 2022, says the UK government could take the lead in making this happen as governments are due to discuss the IMF’s surcharge policy this spring. Without sustained funding, it is feared many of the humanitarian projects that have supported millions of displaced people could be at risk.
Iryna Dobrohorska, Christian Aid’s Country Response Director in Ukraine, said:
“We have seen the huge difference our work has made right across Ukraine. But if world leaders are to continue to be serious about supporting Ukraine, then they should ensure the interest payments to the IMF are instead used for humanitarian purposes.
“There is a long way to go to support people overcoming the psychological traumas created by the war. For as long as it is needed, we put the humanitarian support needed in the hands of the crisis-affected people who know how best to meet the challenges they face."
For two years, Christian Aid has helped around one million people in Ukraine by working through local partners with funding from several donors, including the UK’s Disasters Emergency Committee (DEC). It’s aiming to reach many more by the time its projects are completed later this year.
ENDS
Notes to editors:
- The Archbishop of Canterbury visited one of Christian Aid’s partners in Odesa earlier this month to see the support given to IDPs thanks to UK public donations. He spoke out about the need for sustainable long-term funding.
- The Archbishop of Canterbury was joined by David Green, Christian Aid Public Engagement Lead, who shared his reflections in this piece here. David and other Christian Aid voices are available for broadcast interviews.
Context:
The IMF’s surcharge policy has come under increased scrutiny in recent years, as many developing countries, civil society organisations and UN experts are increasingly calling attention to how it can undermine the ability of governments to protect human rights during times of crisis - UN letter of allegation outlines concerns about the impact of IMF surcharge policy on human rights - Bretton Woods Project
An estimated 14.6 million Ukrainians need humanitarian assistance. This includes 4 million internally displaced persons (IDPs), of which 1 million are children, living in private homes with host communities and in collective centres.
Millions of Ukrainians are living in damaged homes or in buildings which are inappropriate for their needs, and which will not provide sufficient protection from the harsh Ukrainian winter. Temperatures can plummet to as low as -20C in parts of the country. The impact of such severe conditions will be felt by millions, especially the vulnerable and marginalised who are most at risk.
Ukraine is currently already facing a USD 5 billion shortfall a month due to the ongoing war, yet it is estimated that, between 2021 and 2023, Ukraine was required to pay the equivalent of about a quarter of its entire annual health budget during the pandemic in IMF surcharges.
