The International Monetary Fund (IMF) allocated the eighth tranche of $400 million in funding to Ukraine.
The funding is part of the four-year, $15.5 billion, Extended Fund Facility (EFF) Arrangement, Ukrainian Ministry of Finance reported.
Over the two years of the program so far, Ukraine has passed seven reviews, receiving over $10.1 billion. The most recent one was approved by the Fund’s Executive Board on March 28.
In 2025, Ukraine is set to receive up to $2.3 billion under the EFF program following four more reviews, the Ministry reported.
On March 31, 2023, the IMF Executive Board approved the four-year program. Under it, Ukraine has to meet structural benchmarks to receive IMF funding on a quarterly basis. The EFF program has two phases: wartime and post-war.
Since the start of the full-scale war, Ukraine’s state budget has received $12.8 billion in financial aid from the IMF, Ukrainian Finance Minister Serhiy Marchenko said.
Since the beginning of the full-scale war, the International Monetary Fund has been the third-largest provider of financial aid to Ukraine, following the European Union and the United States.
At the end of February, during the Seventh Review of the EFF IMF estimated Ukraine’s real GDP at 3.5% for 2024, with an expectation that this will “moderate” to 2-3% in 2025.
The key reasons for a growth decrease are headwinds from labor constraints, damage to energy infrastructure, and the persistence of Russia’s war in Ukraine.
Key reforms for Ukraine before the next IMF review
Other expectations include the following:
- Ukraine should complete the restructuring of the GDP warrants – one of the last steps after Ukraine agreed to restructure most of its sovereign debt in the summer of 2024.
- To return to stable mid-term state budget planning, Ukraine should also submit the 2026-2028 budget declaration to Ukraine’s parliament in June.
- Among anti-corruption reforms, Ukraine should adopt a law changing pre-trial investigations’ timeframe, a benchmark under the program.