Ukraine and IMF agree on 3rd review of EFF program

Ukraine and the International Monetary Fund, at the level of experts, have agreed on the third review of the Extended Fund Facility (EFF) program in the amount of USD 15.6 billion.

This follows from a statement by Prime Minister Denys Shmyhal on Telegram, the Ukrainian News agency reports.

"We expect that this decision will be approved by the Fund's Executive Board in the near future. We thank the IMF for its consistent solidarity and support. We expect the IMF to provide assistance in the amount of USD 5.4 billion in 2024. With these funds, we will be able to concentrate internal resources as much as possible on defense, which is the number one priority," he wrote.

In general, the need for external financing for this year is USD 37.3 billion.

It is expected that the aid announced by other partners will be allocated and will reach Ukraine.

The Board of Directors of the IMF may consider the allocation of funds to Ukraine in March.

As the Ukrainian News agency earlier reported, the decision of the IMF Board of Directors regarding the first review of the program was preceded by a Staff-Level Agreement reached on November 10, 2023.

On March 31, 2023, the Board of Executive Directors of the IMF approved the four-year EFF program for Ukraine.

The program envisages measures to support fiscal, external, price, and financial stability and economic recovery in a period of high uncertainty, as well as improve corporate governance and strengthen state institutions with the aim of post-war reconstruction and Ukraine's acquisition of membership in the European Union.

The EFF program is implemented in two stages (war and post-war). It provides access to credit funds from the IMF in the amount of SDR 11.6 billion (equivalent to USD 15.6 billion).

Tranches under the program are provided based on the results of quarterly reviews.