Today, on July 16, Minister of Finance of Ukraine Sergii Marchenko met with  IMF mission chief for Ukraine Gavin Gray.

The meeting was also attended by First Deputy Minister of Finance Denys Uliutin, Deputy Minister of Finance Olga Zykova.

The topics discussed included preparations for the fifth review of the four-year Extended Fund Facility (EFF) Arrangement and budget financing in 2024 and 2025.

"The priorities of cooperation with the IMF remain unchanged: performance of the EFF arrangement conditions and mobilization of funds for the urgent needs of the State Budget. We are now in the process of preparing for the fifth review. This is a significant result, as it is the first time Ukraine has reached this stage in its cooperation with the IMF. Together, we are implementing critical policies for the sustainability of Ukraine's financial system. In addition, this year, the IMF is the second largest donor of budgetary assistance - USD 3.1 billion. In total, the State Budget has already received USD 7.6 billion under the EFF. I am grateful to the IMF for its joint efforts to stabilize the macroeconomic situation and mobilize funds for urgent needs," said Sergii Marchenko.  

The next IMF mission for the fifth review of the EFF arrangement will start in September. The discussions will focus on Ukraine's compliance with the terms of the Memorandum of Economic and Financial Policies. If the program is successfully reviewed, Ukraine will be able to receive the next tranche of about USD 1.1 billion from the Fund.   

The fifth review includes one structural benchmark: the adoption of a new law on the  on the Economic Security Bureau of Ukraine (ESBU). In June, the Parliament of Ukraine already passed the draft law on the ESBU in the second reading.

The parties agreed that the further implementation of policies in the financial area should focus on strengthening inernal capacity. Sergii Marchenko emphasized that despite the constant uncertainty and active hostilities, Ukraine is gradually reducing its dependence on international assistance. Measures are being taken to increase domestic resources.

"In the first half of 2024, tax and customs revenues increased by 55% compared to the same period in 2023. Domestic government bonds continue to be the second largest source of State Budget financing. We have positive dynamics, but at this stage, external financing continues to be critically crucial. This year, we have received the necessary assurances from donors. We are also actively working to raise funds for 2025. In this context, the decision of the G7 countries on the proceeds from the frozen assets of russia is crucial", the Minister of Finance said.  

Additional information

The total amount of the Extended Fund Facility for 2023-2027 is USD 15.6 billion. Th Arrangement is part of an overall support package for Ukraine from international partners worth about USD 122 billion.