Ukraine and the International Monetary Fund (IMF) have reached expert-level agreements on the fifth review of the four-year Extended Fund Facility (EFF) worth $15.6 billion. According to Prime Minister Denys Shmyhal, Ukraine may receive another tranche of $1.1 billion after the agreement is approved by the IMF Executive Board, which is expected in the coming weeks.
Shmyhal stressed that all quantitative criteria and structural milestones had been met by the end of June, which indicates the continuation of important reforms in Ukraine, despite the war. The Prime Minister also stressed the importance of supporting international partners in financing non-military expenditures, which allows domestic resources to be directed to the country's defense capability.
The IMF talks took place from September 4 to 10 in Kyiv, where a Fund mission led by Gavin Gray met with government officials, including Finance Minister Serhiy Marchenko and National Bank Governor Andriy Pyshny. The mission confirmed that Ukraine’s economic performance remains stable, despite the devastating effects of the war.
The IMF noted that the four-year EFF arrangement continues to serve as an important anchor for economic policy in an environment of extreme uncertainty. Ukraine's real GDP grew by 6.5% in the first quarter of 2024, and inflation declined to 5.4% in July. At the same time, Ukraine's gross international reserves remain at a sufficient level, reaching $42.3 billion as of September 1.
According to IMF recommendations, the 2025 budget should take into account fiscal constraints and debt sustainability goals, and domestic revenue mobilization efforts are critical for Ukraine's continued economic stability.
