Paul Murphy
Question:419. Deputy Paul Murphy asked the Minister for Foreign Affairs his views on the call for the cancellation of Ukrainian national debt. [18233/22]
View answerTuesday, 5 April 2022
Questions (419)
Written answers
I refer the Deputy to the answer by the Minister for Finance to Question 14365/22 on 22 March 2022, on the subject of IMF debt cancellation for Ukraine, which is a matter within the remit of the Department of Finance.
As the Minister for Finance stated in that response, 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.
Ireland remains steadfast and unwavering in its support to Ukraine, including through provision of humanitarian aid, the European Peace Facility package for Ukraine, and the EU's emergency macro-financial assistance operation of €1.2 billion in the form of loans to foster stability in Ukraine.
Question No. 420 answered with Question No. 415.