The International Monetary Fund (IMF) Executive Board has concluded the Eighth Review of the Extended Fund Facility (EFF) for Ukraine, allowing the country to access US$0.5 billion for budget support. This decision increases total disbursements under the IMF-supported program to US$10.6 billion.
Ukraine's EFF, spanning 48 months with an SDR 11.6 billion allocation, equivalent to about US$15.5 billion or 577 percent of quota, was initially approved on March 31, 2023. It is part of a broader international support package amounting to US$152.9 billion in its baseline scenario. The program aims to stabilize Ukraine’s fiscal and macroeconomic environment amid significant uncertainty while promoting economic recovery and strengthening governance.
For this review period, Ukraine successfully met all performance criteria and completed necessary reforms such as submitting a reform plan for the State Customs Service (SCS). New benchmarks have been set concerning financial infrastructure updates and alignment with international standards.
"The authorities requested a rephasing of access to IMF financing over the remainder of 2025," according to an official statement, aligning it with updated balance of payments needs without altering the program size.
Ukraine's growth forecast remains at 2–3 percent for 2025 amidst ongoing challenges like electricity deficits and agricultural export weaknesses due to Russia's conflict impact.
Gita Gopinath, First Deputy Managing Director of the IMF, stated: "Macroeconomic stability has been preserved through skillful policymaking as well as substantial external support." However, she noted that "the war is weighing on the outlook" with high risks necessitating contingency planning.
The Fund-supported program maintains full financing within a projected cumulative external financing envelope ranging from US$153 billion in its baseline scenario to US$165 billion in more adverse conditions over four years.
Gopinath highlighted essential reforms including modernization efforts within tax services and emphasized continued progress in anticorruption measures: "Sustained progress in anticorruption and governance reforms remains crucial."
With elevated inflation levels persisting, tight monetary policy by Ukraine’s National Bank is deemed appropriate while greater exchange rate flexibility could bolster economic resilience.
Finally, addressing operational vulnerabilities within security markets regulation is vital for attracting foreign investment critical for post-war reconstruction efforts.