Ukraine receives $ 1.1 billion tranche from IMF under extended fund facility

The financial aid was delivered under an extended financing mechanism, supporting critical budget expenditures while requiring continued reforms amid the ongoing Russo-Ukrainian war.

Dec 24, 2024 - 09:00

Ukraine receives $ 1.1 billion tranche from IMF under extended fund facility

ukraine receives $11 billion tranche imf under extended fund facility imf's executive board imforg international monetary delivered 7th financing mechanism supporting critical budget expenditures while requiring continued reforms amid ongoing

Ukraine has received approximately $1.1 billion from the International Monetary Fund as the seventh tranche following the completion of the sixth review under the Extended Fund Facility (EFF) program, the Ukrainian Ministry of Finance reports.

Amid the ongoing Russo-Ukrainian war, the IMF’s Executive Board approved the four-year Extended Fund Facility program for Ukraine on 31 March 2023, providing approximately $15.5 billion in funding. Ukraine received its previous IMF tranche of about $1.1 billion in October 2024. Additionally, Ukraine received $4.8 billion from the World Bank on 27 November 2024 and a second tranche of 4.1 billion euros from the EU on 18 December after fulfilling all obligations.

Ukraine’s Prime Minister Denys Shmyhal confirmed on 23 December that the funds have already been credited to Ukrainian accounts and will be directed toward critical budget expenditures.

According to the IMF, Ukraine’s economic performance remains strong despite challenging conditions, with all end-September quantitative performance criteria and structural benchmarks being met successfully.

IMF Managing Director Kristalina Georgieva stated that “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.”

Ukrainian Finance Minister Serhii Marchenko noted that Ukraine has successfully passed six reviews under the EFF program, securing approximately $9.8 billion out of the total $15.6 billion available under the program.

The IMF program forms part of a larger $148 billion international support package for Ukraine. The organization indicates that economic growth projections for 2024 have been upgraded due to better-than-expected resilience to energy shocks, though a slowdown is anticipated in 2025.

According to Ukraine’s Finance Ministry, Ukraine’s next steps are outlined in the joint Memorandum with the IMF on economic and financial policy, including structural reforms in public finances, financial sector, monetary policy, governance, anti-corruption measures, and the energy sector.

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