The International Monetary Fund (IMF) Executive Board has completed the fifth review of the Extended Fund Facility (EFF) arrangement for Ukraine, allowing the nation to access US$1.1 billion for budget support. This brings total disbursements under the program to US$8.7 billion. The 48-month EFF arrangement, which was approved on March 31, 2023, provides Ukraine with SDR 11.6 billion, equivalent to US$15.5 billion or about 577 percent of its quota.
This financial support is part of a larger US$151.4 billion package designed to aid Ukraine's economic recovery and strengthen governance and institutions amidst ongoing reconstruction efforts and the country's path towards European Union accession.
All performance criteria and targets set for June were met by Ukrainian authorities who have also undertaken necessary structural reforms in areas such as tax privileges and public investment management. "Further strengthening medium-term budgeting, fiscal risk frameworks and transparency, and public investment management should advance in support of these goals," stated Kristalina Georgieva, Managing Director of the IMF.
Despite continued growth and moderate inflation in early 2024 bolstered by external support, challenges persist due to sustained Russian attacks on energy infrastructure leading to an uncertain outlook for late 2024 into 2025.