IMF Allocates Another $1.1 Billion Tranche to Ukraine

The International Monetary Fund has decided to allocate another tranche of $1.1 billion to Ukraine under the Extended Fund Facility (EFF). This is stated in an official IMF announcement on the completion of the fifth review of the EFF programme for Ukraine, Ukrinform reports.

‘The IMF Executive Board today completed the fifth review of the agreement under the Extended Fund Facility (EFF) for Ukraine, allowing Ukraine to allocate about $ 1.1 billion to support the budget,’ the document says.

Despite the challenging environment, Ukraine's economy remains resilient and the EFF programme performance is strong.

‘The authorities have met all quantitative performance criteria as of the end of June, as well as the four structural benchmarks,’ the report says. Two structural benchmarks have been cancelled at this stage to give Ukraine more time to complete reforms.

It is emphasised that in order to maintain macroeconomic stability, restore fiscal and debt stability, and strengthen institutional reforms, Ukraine needs to maintain a steady reform momentum. To this end, the Ukrainian authorities should continue to mobilise domestic revenues. The timely disbursement of external support to Ukraine by its partners will also play a significant role.

In 2023, the IMF approved a 48-month EFF arrangement for Ukraine, with a total availability of up to $15.5 billion. The programme is part of a $151.4 billion support package for Ukraine. The IMF-Ukraine arrangement helps to consolidate policies that support fiscal, external, and macrofinancial stability at a time of extreme uncertainty. Together with the latest tranche from the IMF, the total disbursement under the EFF programme for Ukraine reaches $8.7 billion.