Ukraine will receive about USD 2.2 billion from the IMF. The IMF Board completed the Fourth Review of the EFF Arrangement

Today, the Executive Board of the International Monetary Fund (IMF) completed the fourth review of the extended arrangement under the Extended Fund Facility (EFF) for Ukraine.

The successful review paves the way for Ukraine to immediately receive the tranche of EFF financing in the amount of about USD 2.2 billion (SDR 1.66 billion). This will bring the total disbursements under the IMF-supported program to about $7.6 billion. 

The State Budget of Ukraine has already received four tranches under the IMF EFF Arrangement totaling about USD 5.4 billion, including about USD 900 million in March 2024. In total, in 2024, the EFF provides USD 5.4 billion in budget assistance to Ukraine.

The IMF Executive Board noted the achievements of the Ukrainian side in performing the conditions of the EFF Arrangement, as well as its commitment to the reform agenda under martial law. 

Ukraine has met all the structural benchmarks for the fourth review stipulated in the Memorandum of Economic and Financial Policies:

• "Enact amendments to the procedural code to rationalize matters or issues to be heard at the first instance by one anti-corruption judge or by a panel of three anti- corruption judges."

• "Develop a concept note on the 5-7-9 program with proposals to target small and medium enterprises by phasing out the eligibility of large companies, enhance monitoring, and maintain adequate safeguards."

"For the first time in the history of cooperation with the IMF, Ukraine has progressed so far in implementing the terms of the joint program. The successful fourth review of the EFF is the result of coordinated work of the Government of Ukraine, the National Bank of Ukraine, and the IMF. It underscores Ukraine's capacity to implement reforms and effective policies that ensure macroeconomic stability, and to steadily advance towards EU integration, even amid full-scale war. I also want to highlight the IMF's substantial financial support, which has been the largest among international financial organizations since the beginning of the war. To date, this support amounts to over USD 8 billion in budgetary assistance," said Minister of Finance of Ukraine Sergii Marchenko. 

Following the fourth review, IMF staff noted that the Ukrainian economy was more resilient than expected in the first quarter of 2024, with robust growth outturns, continued disinflation, and the maintenance of adequate reserves. At the same time, the outlook for the remainder of the year has worsened, largely due to devastating russian attacks on Ukrainian energy infrastructure and uncertainty about the length of russia’s war against Ukraine. 

Considering these risks, IMF Managing Director Kristalina Georgieva noted that fiscal policies for the remainder of 2024, together with preparation for the 2025 budget, should be underpinned by steadfast State Budget revenue mobilization efforts aligned with the National Revenue Strategy. This will help maintain budget liquidity and finance urgent budget needs. Further strengthening medium-term budgeting, fiscal risks and transparency, and public investment management should advance in support of these goals. 

Kristalina Georgieva emphasized that external commercial debt treatment in line with the debt sustainability objectives under the program will be necessary to restore debt sustainability and create the needed space for critical spending.

Additional information

On March 31, 2023, the IMF Executive Board approved a four-year Extended Fund Facility for Ukraine with funding of about USD 15.6 billion (SDR 11.6 billion). This Arrangement is part of an overall support package for Ukraine from international partners worth about USD 122 billion.