IMF approved a new tranche for Ukraine of 1.1 billion dollars

IMF approved a new tranche for Ukraine of 1.1 billion dollars

The Executive Board of the International Monetary Fund has completed the sixth review of the extended financing program for Ukraine and approved the release of a new tranche amounting to 1.1 billion dollars.

This was reported by the IMF, and the Ministry of Finance of Ukraine.

"As a result of the successful review, Ukraine will receive a tranche amounting to approximately 1.1 billion USD in the near future. Thus, IMF financing this year will amount to nearly 5.4 billion USD, and the total amount of payments under the EFF program will reach 9.8 billion USD," stated the Minister of Finance of Ukraine, Serhiy Marchenko.

The IMF reported that Ukraine’s economy demonstrates resilience despite challenging conditions. All quantitative performance criteria and structural benchmarks planned for the end of September have been met.

The Fund also emphasized the need to maintain the pace of reforms, particularly in the area of domestic revenue mobilization, for macroeconomic stability and restoration of fiscal sustainability.

"The economy remains resilient, reflecting the adaptability of households and companies; however, risks are increasing due to strikes on energy infrastructure and labor market tensions. Contingency planning is crucial for timely response," noted IMF Managing Director Kristalina Georgieva.

Georgieva highlighted that strict implementation of the adopted state budget for 2025 will be key for further economic stability and emphasized the need to continue progress in mobilizing domestic revenues to meet priority spending needs and restore fiscal sustainability.

The IMF positively assessed the recent increase in the NBU’s key policy rate and urged maintaining exchange rate flexibility to enhance economic resilience.

In particular, according to Georgieva, Ukraine should pay special attention to the establishment of a new high administrative court and amendments to the Criminal Procedure Code.

The IMF’s baseline scenario forecasts GDP growth in 2024 to be at 4%, but in the following year, a slowdown to 2.5-3.5% is expected due to labor market tensions, the impact of attacks on energy infrastructure, and continued military uncertainty.

The Ministry of Finance reported that, overall, Ukraine has already completed 35 structural benchmarks under the EFF program, 20 of which are in the fiscal area.