IMF approves new USD 500 M tranche for Ukraine

This was reported by Ukrinform on Monday.

“The IMF Executive Board today completed the eighth review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, allowing for the disbursement of approximately $0.5 billion (SDR 0.37 billion) to Ukraine, which will be directed toward budget support,” the statement said.

 At the same time, it is noted that the Ukrainian economy remains stable, and the authorities have fulfilled all quantitative performance criteria as of the end of March, as well as preliminary measures and two structural benchmarks within the review.

The Fund emphasized that in order to restore fiscal and debt sustainability and support growth, Ukraine must achieve “progress in mobilizing domestic revenues, strengthening the investment climate, improving governance, and completing the debt restructuring strategy.” 

In addition, four new structural benchmarks were established, including: measures to update the single project portfolio; preparation of a priority roadmap for financial market infrastructure; introduction of international valuation standards; and development of legislative proposals to harmonize securitization and bonds with international standards.

At the same time, the IMF Executive Board revised the deadlines for some other structural benchmarks, including the appointment of the head of the State Migration Service, to give the authorities more time to complete important reforms. 

The Ukrainian authorities also requested a reallocation of access to IMF financing for the remainder of 2025 to better align it with Ukraine's updated balance of payments needs.

The total size of the program remains unchanged. 

As reported by Ukrinform, on May 28, the IMF mission reached a staff-level agreement with the Ukrainian government on the eighth review of the Extended Fund Facility (EFF) program. The current EFF program, which allows Ukraine to receive up to USD 15.5 billion in credit funds over four years, was approved at the end of March 2023. The agreement between the IMF and Ukraine helps to consolidate policies that support fiscal, external, and macrofinancial stability at a time of extreme uncertainty. In addition, the EFF aims to support economic recovery, improve governance, and strengthen institutions to promote long-term growth in the context of Ukraine's reconstruction and path to the European Union.