After the completion of the fifth review of the Enhanced Financing Program (EFF), the IMF announces the allocation of 1.1 billion dollars for Ukraine, which will be directed to support the budget.
Points of attention
- Ukraine successfully fulfilled all the quantitative criteria of the effectiveness of the EFF program.
- The EFF's extended financing program aims to ensure macroeconomic stability and support the country's domestic revenues.
- Ukraine has already attracted about 4.5 billion dollars from the total amount of 15.6 billion dollars under the EFF program.
What is known about the new IMF tranche
The management of the Fund draws attention to the fact that the economy of Ukraine remains stable, and the implementation of the EFF program is high, despite the difficult conditions.
Against this background, it is emphasized that official Kyiv managed to successfully fulfill all quantitative performance criteria as of the end of June, as well as complete four structural benchmarks.
In order to ensure macroeconomic stability, restore the stability of public finances and debt obligations, as well as to strengthen institutional reforms, it is necessary to maintain the constant momentum of reforms, intensify the mobilization of domestic revenues and ensure timely receipt of foreign aid, the IMF added.
In addition, it is emphasized that during the revision it was possible to optimize the schedule of tranches for the next year, due to which more resources will be attracted to the state budget.
What is important to know about the program of cooperation with the IMF "Enhanced Financing Mechanism"
On March 31, the Executive Board of the IMF approved a four-year extended financing program under the Extended Fund Facility (EFF).
The Fund emphasizes that it is a loan in the amount of 15.6 billion dollars for Ukraine.
As mentioned earlier, the program consists of two parts: urgent funding until the war is won; post-war reconstruction.
The loan is the first major package approved by the IMF for a country at war. For the past year, 2023, Ukraine has already attracted about 4.5 billion dollars out of this 15.6 billion dollars. In May 2024, Ukraine and the IMF began negotiations on the fourth revision of the extended financing program.
We remind you that in June 2024, a new tranche of $2.2 billion was allocated to Ukraine.
