IMF Executive Board Completes the First Review under the Extended Fund Facility (EFF) Arrangement for Ukraine

Today, on June 29, the Executive Board of the International Monetary Fund completed the first review under the Extended Fund Facility (EFF) arrangement for Ukraine.

The review acknowledges strong progress of the Government of Ukraine in performing the EFF commitments. Ukraine has met all applicable quantitative performance criteria for April and structural benchmarks as of the end of June. These include  enactment of the second Supplementary Budget, preparing a draft legislative initiative to strengthen the Budget Code, and complete inputs toward developing the National Revenue Strategy. The Fund's experts have also upgraded the expectations for  the macroeconomic prospects  in 2023.

The successful review of the Program also allows Ukraine to receive USD 890 million (SDR 663.9 million) in the near future, the second tranche of the IMF Extended Fund Facility.

Minister of Finance of Ukraine Sergii Marchenko said:

"I am grateful for the constructive cooperation of the IMF staff and management, the Government of Ukraine and the National Bank of Ukraine, which allowed us to achieve a successful review of the Program. The commitments under the EFF contribute to strengthening Ukraine's economic and financial policies, as well as to mobilizing financial resources for budget needs and the country's recovery. After the first review, we will continue to work actively to implement the jointly agreed reforms to ensure macroeconomic stability, strengthen governance, support reconstruction efforts, and ultimately Ukraine's European integration."

On March 31, the IMF Executive Board approved a four-year Extended Fund Facility for Ukraine totaling USD 15.6 billion (SDR 11.6 billion). Ukraine received the first tranche of USD 2.7 billion (SDR 2 billion) on April 3 this year.

The EFF program provides for the implementation by the Government of Ukraine of policies aimed at maintaining fiscal and monetary stability and stimulating economic recovery. The program aims to improve economic governance and strengthen institutions to promote long-term growth and European integration.