Ukraine, IMF reach staff-level agreement on next EFF review

The International Monetary Fund and the Ukrainian authorities reached a staff-level agreement on the fifth review of the Enhanced Fund Facility (EFF) for Ukraine.

This was reported by the IMF press service on Tuesday, Ukrinform reports.

“International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff-level agreement (SLA) on the Fifth Review of the 4-year Extended Fund Facility (EFF) Arrangement. Subject to approval by the IMF Executive Board, Ukraine would have access to about US$ 1.1 billion," the Fund noted.

It is emphasized that Ukraine's program performance “remains high”.

“The authorities met all end-June quantitative performance criteria (QPCs) and the structural benchmark for the review. Understandings were also reached on policy settings and reforms to sustain macroeconomic stability as the war continues," the statement reads.

In addition, the IMF noted that the Ukrainian economy remained resilient in the first half of 2024, but “headwinds are intensifying and the outlook remains exceptionally uncertain”.

In this context, it is foreseen that the growth of real GDP in Ukraine will stand at 2.5-3.5%. By the end of 2024, inflation will rise to about 9%.

"The continuing war will entail fresh financing needs, requiring determined policy efforts by the authorities and large-scale support from donors," the IMF emphasized.

As Ukrinform reported earlier, Ukraine and the IMF reached an agreement on the fourth review of the EFF in late May, which allowed the country to receive another tranche of about $2.2 billion in early June.