The International Monetary Fund Provides Ukraine With a Tranche of $900 Million

The International Monetary Fund (IMF) has approved a review of the program for Ukraine, allowing Kyiv to receive the third tranche of approximately $900 million USD.

This information is provided on the official page of the International Monetary Fund.

"As the war prolongs, it continues to strain Ukraine’s public finances. Timely external disbursements as well as continued effort on the domestic market are key to meeting Ukraine’s financing needs and preserving macroeconomic and financial stability. In addition, decisive policy actions are needed to secure fiscal and debt sustainability," stated the Managing Director of the IMF, Ms. Kristalina Georgieva.

According to the announcement, the Ukrainian government has made "significant progress" in fulfilling all obligations under the EFF program and has achieved all relevant quantitative performance criteria by June, indicative targets by the end of September, and most structural benchmarks by the end of October.

Furthermore, the IMF statement notes that the Ukrainian economy has demonstrated exceptional resilience. This has led to sustained improvements in growth indicators, continued sharp deflation, and stability in the currency market, even after the National Bank of Ukraine abandoned the fixed exchange rate policy, supported by substantial reserves.

"Steadfast reform momentum to anti-corruption and governance frameworks will be essential to mitigate corruption risks and promote public trust and donor confidence. Decisive structural reforms, in public investment management, governance, and the business environment, can also begin to lay the groundwork for achieving strong, balanced, and green growth in the reconstruction phase and support Ukraine’s path to EU accession," emphasized Georgieva.

Recall that in March 2023, the IMF Board approved a four-year Extended Fund Facility program of $15.6 billion for Ukraine. All funds from the International Monetary Fund are directed towards financing critical expenditures and maintaining macrofinancial stability.

This IMF program is expected to be part of a comprehensive financial support package for Ukraine from international partners amounting to $115 billion. It will consist of both urgent funding until the end of the war and funds for post-war reconstruction and transformation of Ukraine.