Ukraine and the International Monetary Fund have agreed at the expert level on the fifth revision of the $15.6 billion Extended Fund Facility (EFF) for Ukraine.
This was announced by Prime Minister of Ukraine Denys Shmyhal, Babel reports.
Ukraine has fulfilled all the quantitative criteria and structural benchmarks as of the end of June, which are necessary to receive the sixth tranche of $1.1 billion from the IMF.
These agreements demonstrate that Ukraine is continuing important reforms, and international partners support it on this path, Shmyhal said.
The IMF Executive Board must now approve the agreement. After that, Ukraine will receive $1.1 billion.
According to the prime minister, this was the first IMF mission to fully operate in Kyiv during the full-scale invasion. Funds from partners help the Ukrainian government finance all non-military budget expenditures. This allows domestic resources to be allocated to the country’s defense capabilities.
As previously reported by Yaroslav Zheleznyak, a member of the Parliamentary Committee on Finance, Taxation and Customs Policy, the schedule of the next revisions will be as follows
- the sixth review – from December 1, 2024. It is also for about $1.1 billion (SDR 835 million). Ukraine has to fulfill the quantitative indicators as of the end of September and the IMF’s structural beacons for the period;
- the seventh review is due on March 1, 2025. By $0.9 billion (SDR 684 million). Ukraine has to fulfill the quantitative targets as of the end of December 2024 and the beacons for the period.
The assessment will be based on an updated Memorandum of Economic and Financial Policies and a revised set of structural benchmarks.
The Fund conducts quarterly monitoring of the EFF implementation. This is a guarantee that the program, whose main objective is to support macrofinancial stability and implement structural reforms on the path to EU membership, is being implemented.
If the review is successful, Ukraine will receive the next tranche of $1.1 billion under the program in December.
