The International Monetary Fund (IMF) Executive Board has completed the sixth review of Ukraine's Extended Fund Facility (EFF), allowing the country to access an additional US$1.1 billion. This brings total disbursements under the program to US$9.8 billion. The EFF, approved on March 31, 2023, is part of a larger US$148 billion support package for Ukraine aimed at stabilizing its economy amidst ongoing conflict.
Ukraine's performance under the program remains strong, with all quantitative performance criteria and indicative targets met by end-September. Economic growth in 2024 has been revised upwards due to resilience against energy shocks, though a slowdown is anticipated in 2025 due to labor market constraints and infrastructure attacks.
IMF Managing Director Kristalina Georgieva stated: "Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine. Despite the war, macroeconomic stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support."
The IMF emphasizes that continued external support is crucial for maintaining financial stability. A tax package aligned with the program's baseline has been enacted, but strict budget execution is necessary due to limited buffers.
Georgieva highlighted the need for progress in revenue mobilization and customs reform: "Continued progress at domestic revenue mobilization is imperative for Ukraine to meet its high priority spending needs and to restore fiscal sustainability."
Inflation rates have risen unexpectedly, prompting recent monetary policy tightening by the National Bank of Ukraine (NBU). The financial sector remains stable but requires vigilance due to heightened risks.
Reform momentum in anticorruption and governance must be sustained, particularly regarding judicial reforms.