IMF Agrees to Disburse Tranche of Over $1 Billion to Ukraine

The IMF mission has agreed to disburse a $1.1 billion tranche to Ukraine. Further conditions include work on tax payments, Ukrenergo and the National Anti-Corruption Bureau audit.

This was reported by the IMF press service.

Representatives of the International Monetary Fund mission, who have been working in Kyiv since 4 September, agreed on a positive revision of the four-year programme to finance Ukraine and the allocation of another tranche of $1.1 billion.

‘Ukraine has fulfilled all the quantitative criteria and structural benchmarks as of the end of June that were required for this review,’ said Gavin Gray, head of the IMF mission to Ukraine.

It is reported that the IMF does not set specific requirements in the context of tax increases in Ukraine. The head of the mission noted that the Ukrainian authorities should take measures to close existing opportunities for tax evasion and fight the shadow economy in accordance with the National Revenue Strategy.

‘Legislation on the reform of the Customs Code should confirm the central role of the Ministry of Finance in the supervision of customs. It should also establish robust mechanisms for the selection of a permanent head of customs and other key leadership positions in the agency,’ Gray added.

Gray also mentioned the creation of a new High Administrative Court, reform of the Accounting Chamber, and the first external audit of the National Anti-Corruption Bureau as short-term priorities. The independent supervisory board of Ukrenergo is to resume its work by the end of December.

On 4 September, the IMF mission begins discussions with the Ukrainian authorities to revise the $1.1 billion Extended Fund Facility programme.

As The Gaze previously reported, in December 2023, Ukraine received the third tranche of funding from the International Monetary Fund in the amount of about $900 million under the Extended Fund Facility programme.