Ukraine received a tranche from the International Monetary Fund for $2.2 billion under the program for 2023-2027 for almost $16 billion.
Points of attention
- The government of Ukraine received a $2.2 billion tranche from the IMF under a program with a volume of almost $16 billion for the period 2023-2027.
- This amount will help finance critical budget expenditures, social benefits, and salaries of doctors and teachers in Ukraine.
- Ukraine's agreement with the IMF provides two more tranches of $1.1 billion in 2024.
- Ukraine has political commitments from partners to allocate $122 billion until 2027 as part of the IMF program.
What is known about the new IMF tranche to Ukraine
Ukrainian PM Denys Shmyhal noted this is a part of the funds provided by the extended financing mechanism (EFF) for $16 billion.
As Shmyhal noted, in order to receive them, Ukraine did important homework and successfully passed the fourth revision of the program — for the first time in bilateral relations with the IMF.
The transferred amount will help the government finance critical budget expenditures, social benefits, and salaries of doctors and teachers.
IMF Program for Ukraine
Ukraine's agreement with the IMF on the EFF program for $15.6 billion was approved in March 2023. Five tranches totalling about $7.6 billion have already been received within the program's framework, including 900 million dollars in March and the last tranche of $2.2 billion in July. In 2024, Ukraine expects to receive two more tranches of $1.1 billion each (in October and December).
The last tranche was received by the IMF Board of Directors' decision, which was adopted on June 28.
As a result, the total international aid to Ukraine since the beginning of the year reached 16 billion dollars.
As part of the program, Ukraine also received political commitments from partners to allocate $122 billion by 2027. At the same time, the IMF developed a negative scenario for Ukraine's economy in the event of a protracted war. In this case, the total financing of Ukraine will increase to $140.7 billion.
During the war, all taxes collected in Ukraine went to military needs. International aid finances social expenditures
