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Ukraine War

Dáil Éireann Debate, Tuesday - 22 March 2022

Tuesday, 22 March 2022

Questions (247)

Eoin Ó Broin

Question:

247. Deputy Eoin Ó Broin asked the Minister for Finance if he has raised the issue of IMF debt cancellation for Ukraine as part of the international assistance to Ukraine. [14365/22]

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Written answers

As the Deputy may be aware, as Minister for Finance I am Ireland’s Governor to a number of global and European International Financial Institutions (IFIs) including the World Bank, the IMF, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) as well as a number of other regional multilateral development banks. The IFI community has reacted quickly to provide vital financial support for Ukraine. On 9 March, the Executive Board of the IMF approved a disbursement of US$1.4 billion under the Rapid Financing Instrument (RFI) to help Ukraine meet urgent financing needs and mitigate the economic impact of the war. This follows a US$723 million package of support approved by the World Bank; a €668 million immediate financial support package for Ukraine to be provided by the EIB; and a €2 billion ‘resilience package’ approved by the EBRD.

In the absence of full funding by bilateral donors, debt cancellation or debt forgiveness by the IMF risks impairing the Fund's financial integrity which, in turn, could jeopardise future financing for Ukraine and other countries in need. Instead, the IMF’s ability to provide debt service relief on its loans to members must be underpinned by donor grants for the repayment of those loans.  For example, during the COVID-19 crisis, the IMF used the donor-supported Catastrophe and Containment Relief Trust to provide debt relief totalling almost US$1 billion to cover debt obligations owed to the Fund between April 2020 and April 2022.

Finally, I can assure the Deputy that my Department has very clearly articulated the Irish Government position in relation to what is happening in Ukraine. We are working with our EU partners and other like-minded members of these IFIs in supporting these institutions’ evolving response to the situation and their initiatives to provide support and financial assistance to the government and people of Ukraine.

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