IMF approves new $1.1B tranche for Ukraine

Following Friday's meeting on the sixth review of the Extended Fund Facility for Ukraine, the IMF Executive Board decided to allocate for Ukraine the next tranche worth $1.1 billion.

That’s according to an IMF statement, seen by Ukrinform.

"The IMF Board today completed the Sixth Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$1.1 billion to Ukraine, which will be channeled by the authorities for budget support," the Fund noted.

It is indicated that Ukraine's economy remains resilient, and that performance under the EFF remains strong despite challenging conditions. The authorities met all end-September quantitative performance criteria and structural benchmarks, the Fund emphasized.

“Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine. Despite the war, macroeconomic stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support,” said Kristalina Georgieva, IMF Managing Director.

At the same time, the IMF points to the need to ensure a sustained momentum of reforms and progress in mobilizing domestic revenues in Ukraine, as well as the importance of timely allocation of external support. This is necessary to maintain macroeconomic stability, restore fiscal and debt sustainability, and improve governance.

Taking into account the said tranche, the total amount of payments under the EFF program for Ukraine has reached $9.8 billion.

As Ukrinform reported earlier, the IMF approved a 48-month EFF arrangement for Ukraine with general access to $15.5 billion in loans in late March 2023. The program became part of a $151.4 billion support package for Ukraine. The agreement between the IMF and Ukraine helps consolidate policies that support fiscal, external, and macrofinancial stability at a time of exceptionally high uncertainty. In addition, the EFF aims to support economic recovery, improve governance, and strengthen institutions to promote long-term growth in the context of recovery and Ukraine's path to the European Union.