IMF approves new USD 8.1 billion program for Ukraine: first tranche to arrive soon

The Board of Directors of the International Monetary Fund (IMF) has approved a new four-year Extended Fund Facility (EFF) program for Ukraine for USD 8.1 billion. The first transfer of funds is expected in the near future.

This was announced by Prime Minister of Ukraine Yulia Svyrydenko.

"The first tranche - about USD 1.5 billion - will arrive in Ukraine in the near future. The funds will be used to finance the budget deficit and support macro-financial stability," Svyrydenko informed.

According to her, the IMF decision is especially important in the fifth year of a full-scale war and against the backdrop of russia's systematic attacks on energy infrastructure, as it provides guaranteed financial support and a resource for the stable operation of the state.

"The program supported by the IMF is part of a broader financial framework designed to cover the projected state budget deficit of USD 136.5 billion over four years," the report says.

The head of government noted that the document provides for the continuation of structural reforms that in previous years helped maintain macroeconomic and financial stability.

In addition, the new program of cooperation with the IMF, according to her, is the basis for all international assistance to Ukraine, including the support package from the EU for EUR 90 billion, as well as financing from the G7 countries and international financial institutions.

"The partners confirmed the extension of the current moratorium on servicing official debt and the readiness to complete the restructuring after the situation stabilizes," Svyrydenko summarized.

As Ukrainian News Agency earlier reported, in late November, Ukraine and the International Monetary Fund reached an agreement at the staff level on a new four-year agreement within the framework of the Extended Fund Facility for the amount of USD 8.1 billion.

One of the conditions for the new program was to be the introduction of VAT for individual entrepreneurs.