International Monetary Fund Approves Immediate $2.2 Billion Tranche for Ukraine

The International Monetary Fund has approved a $2.2 billion tranche to support Ukraine's state budget.

This is stated in the IMF report published the day before, on Friday, 28 June.

It is noted that the IMF Board of Directors has completed the fourth review of the programme under the Extended Fund Facility for Ukraine (EFF) and decided to allocate funds.

"The Executive Board of the International Monetary Fund (IMF) today completed the Fourth Review of the EFF arrangement for Ukraine, allowing the authorities to immediately draw down USD 2.2 billion (SDR 1.66 billion) to support the budget. This will bring the total disbursement under the IMF-supported programme to about $7.6 billion," the statement said.

Following the Executive Board's discussion on Ukraine, Ms Kristalina Georgieva, IMF Managing Director, issued a statement saying, among other things, that Russia's military invasion of Ukraine continues to have a devastating social and economic impact on Ukraine. 

Nevertheless, the IMF believes that despite the challenging environment, Ukraine's performance under the EFF programme remains strong. All quantitative performance criteria as of the end of March were met, and all structural benchmarks as of the end of June were met on time or with a slight delay.

"Despite the war, macroeconomic and financial stability has been maintained thanks to the skilful policy management of the Ukrainian authorities, as well as significant external support. The economy remains resilient, reflecting the continued adaptability of households and businesses," the IMF said in a statement. 

Going forward, the IMF expects a slowdown in the pace of recovery, especially given the attacks on Ukraine's energy infrastructure, as well as the high risks associated with the uncertainty caused by the war.

To contain fiscal risks, ensure donor confidence, economic growth, and support on the path to EU accession, "consistent reforms aimed at strengthening the fight against corruption, including ensuring the effectiveness of anti-corruption institutions, are important."