IMF allocates nearly USD 700 million to Ukraine: what is known about new tranche?

The IMF has approved the disbursement of a USD 690 million tranche to Ukraine as part of a four-year financial support program.

According to the IMF’s website, the Fund’s Executive Board has completed its latest review of the program of cooperation with Ukraine, paving the way for the immediate disbursement of funds.

The IMF noted that Ukraine is generally successfully fulfilling the program’s conditions. All key quantitative targets had been met as of the end of March, although the implementation of some structural reforms was delayed.

The Fund emphasized that the Ukrainian government has agreed to take additional steps to rectify the situation and has updated the timeline for implementing key reforms. These include, in particular, changes in the areas of public finance, anti-corruption, governance, energy, and the financial sector.

Following the disbursement of the new tranche, the total amount of funds Ukraine has received from the IMF under this program will increase to USD 2.2 billion.

The IMF has also concluded its annual Article IV consultations with Ukraine. During these consultations, measures to support economic stability amid the war and to prepare the country for the transition to market economy standards—necessary for accession to the European Union—were assessed.

As the Ukrainian News agency earlier reported, in mid-June, Ukraine and the International Monetary Fund reached a staff-level agreement on the first review of the four-year Extended Fund Facility (EFF) program worth USD 8.1 billion; and if the IMF Executive Board approves the results of the review, Ukraine will receive a USD 690 million tranche.