The IMF Board completed the Sixth Review of the EFF Arrangement. Ukraine will receive about USD 1.1 billion in the near future

On December 20, the Executive Board of the International Monetary Fund (IMF) has completed the sixth review of the Extended Fund Facility (EFF) for Ukraine.

Ukraine has met five structural benchmarks envisaged for the sixth review of the program, as well as three more ahead of schedule:

• adopted amendments to the Customs Code in line with international best practice;
• conducted pre-war policies and practices for medium-term budget planning; 
• assessed risks to financial stability and prepared action plans for various scenarios; 
• analysed the debts and assessed financial conditions of heating companies; 
• developed the state ownership policy, dividend policy and privatisation strategy;
• adopted amendments to exempt regulatory decisions by National Energy and Utilities Regulatory Commission from the state registration procedure;
• completed the formation of the full supervisory board of Ukrenergo, with independent members constituting the majority of the supervisory board (ahead of schedule);
• enacted amendments to the law to reform the Accounting Chamber of Ukraine to strengthen its institutional capacity and efficiency (ahead of schedule).

In total, Ukraine has already performed 35 structural benchmarks under the EFF, including 20 in the fiscal area.

The IMF management noted the progress of the Ukrainian side in performing the conditions of the EFF program. 

The IMF has also upgraded Ukraine's economic growth forecast for 2024 to 4%, given better than expected resilience to the energy shocks. 

IMF Managing Director Kristalina Georgieva noted that the tax package and 2025 Budget in line with the IMF program baseline have been enacted. Continued progress at domestic revenue mobilization is imperative for Ukraine to meet its priority spending needs and to support fiscal sustainability. Strong implementation of the National Revenue Strategy and customs reform will help raise further revenues, improve compliance, combat evasion, and support EU accession. 

“As a result of the successful review, Ukraine will receive a tranche of about USD 1.1 billion in the near future. This will bring the IMF's financing this year to almost USD 5.4 billion, and the total disbursement under the EFF will amount to USD 9.8 billion. I am grateful to the IMF team for the productive cooperation”, - said Minister of Finance of Ukraine Sergii Marchenko.

The State Budget of Ukraine has already received six tranches under the IMF EFF Arrangement totalling about USD 8.7 billion, including about USD 4.2 billion in 2024. 

Background information

On March 31, 2023, the IMF Executive Board approved a four-year Extended Fund Facility (EFF) program for Ukraine with funding of about $15.5 billion (SDR 11.6 billion). 

The program is part of an international support package for Ukraine that currently amounts to about USD 148 billion for 2023-2027.

IC UAC according to the MFU