IMF approves USD 2.2 billion tranche for Ukraine
According to Ukrinform, this is stated in an IMF statement released on Friday.
It is noted that the IMF Board of Directors has completed the fourth review of the programme under the Extended Fund Facility for Ukraine (EFF) and decided to allocate funds.
The IMF believes that despite the difficult conditions, Ukraine's performance under the EFF programme remains high. All quantitative performance criteria as of the end of March were met, and all structural benchmarks as of the end of June were met on time or with a slight delay.
"Ukraine's economy continues to be resilient, although the outlook is very uncertain," the IMF said. "Sustained reform momentum and timely external support are needed to maintain macroeconomic stability, restore fiscal and debt sustainability, and strengthen institutional reforms to pave the way for accession to the European Union.
Going forward, the IMF expects a slowdown in the pace of recovery, especially given the attacks on Ukraine's energy infrastructure and the high risks associated with the uncertainty caused by the war.
It is also noted that "consistent reforms aimed at strengthening the fight against corruption, including ensuring the effectiveness of anti-corruption institutions, are important to contain fiscal risks, ensure donor confidence, economic growth and support on the path to EU accession".
According to the Ministry of Finance, Ukraine has fulfilled all the structural benchmarks for the fourth review stipulated in the Memorandum of Economic and Financial Policies.
"For the first time in the history of cooperation with the IMF, Ukraine has come so far in implementing the terms of the joint programme. The successful revision of the EFF is the result of the coordinated work of the Government of Ukraine, the National Bank and the IMF. This demonstrates Ukraine's ability to implement reforms and effective policies to ensure macroeconomic stability and to move confidently towards EU integration in the face of a full-scale war," said Finance Minister Sergii Marchenko.
With these USD 2.2bn, the total disbursements under the IMF programme will reach about USD 7.6bn.
As reported, an agreement on a 48-month EFF Extended Fund Facility programme providing access to USD 15.6 billion was approved on 31 March 2023. The programme aims to consolidate policies to support fiscal, price and financial stability in a period of "extremely high uncertainty", economic recovery, improved governance, and long-term growth in the context of Ukraine's reconstruction and EU integration.
