Prime Minister Yulia Svyrydenko officially confirmed that the Board of Directors of the International Monetary Fund has approved a new four-year Extended Fund Facility for Ukraine worth $8.1 billion.
Points of attention
- Ukraine is required to continue implementing reforms to sustain macroeconomic and financial stability as part of the IMF program.
- Kyiv's allies have agreed to extend the moratorium on official debt servicing and are prepared to undergo debt restructuring once the situation stabilizes.
What is known about the new IMF decision?
According to Svyrydenko, Ukraine will soon receive the first tranche — about $1.5 billion.
The specified amount will be spent on financing the budget deficit, as well as ensuring macro-financial stability.
What is important to understand is that the indicated program is part of a broader financial framework that aims to cover the projected state budget deficit of $136.5 billion over 4 years.
Ukraine must also continue implementing the reforms that have guaranteed macroeconomic and financial stability in previous years.
Importantly, the new IMF cooperation program for Ukraine is the anchor for all international financial support, in particular for obtaining a €90 billion loan from the European Union. In addition to financing from the EU, there is also financing from the G7 countries, international financial institutions, as well as a reduction in debt payments on official debt through the debt relief mechanism.
Yulia Svyrydenko
Prime Minister of Ukraine
Kyiv's allies agreed to extend the current moratorium on official debt servicing and to be ready to complete restructuring once the situation stabilizes.
