The IMF Executive Board has approved the eighth review of the Extended Fund Facility (EFF) programme and authorised the disbursement of a tranche of US$0.5 billion.
Source: National Bank of Ukraine (NBU)
Quote: "On 30 June 2025, the IMF Executive Board completed the Eighth Review of the Extended Fund Facility (EFF) programme."
Details: This provides for immediate access to financing in the amount of SDR 0.37 billion (about US$0.5 billion equivalent), which will be used to support the state budget. After the tranche is received, the total amount of financing received under the programme will reach US$10.6 billion, as the National Bank of Ukraine stressed.
The programme's performance indicators remain high, with all quantitative performance criteria met as of the end of March 2025. One prior action and two structural milestones have also been completed. Four new structural milestones have been set, and the deadlines for some structural milestones have been revised to give the government additional time to complete key reforms, the statement said.
"Considering the updated balance of payments needs, the Ukrainian side has requested the mission to adjust the payment structure under the EFF programme in 2025. At the same time, the overall size of the programme remains unchanged at US$15.5 billion," the statement says.
Ukraine's economy remains stable, with economic growth forecast to remain at 2-3% in 2025. The risks to the forecast remain extremely high and require a clear action plan in case they materialise.
"The IMF noted that given still elevated inflation, the tight monetary policy stance of the NBU remains appropriate, and the NBU should stand ready to tighten further should inflation expectations worsen. FX reserves remain adequate, sustained by continued sizable external support. Greater exchange rate flexibility will help strengthen economic resilience while safeguarding reserves," the National Bank noted.
The financial sector remains stable, although it requires close monitoring in the context of heightened risks. Improving capital market infrastructure is key to attracting private foreign capital for post-war recovery.
The Fund's statement notes that the ongoing war necessitates the adoption of a supplementary budget for 2025. Restoring fiscal sustainability and meeting priority spending requires decisive efforts to implement the National Revenue Strategy, modernise the tax and customs services, combat tax evasion and harmonise national legislation with EU standards.
These reforms, together with improvements in public investment management, medium-term budgeting and fiscal risk management, are critical to stimulating growth and investment inflows.
"Ukrainian authorities continue working to complete their Eurobond debt restructuring strategy. Reaching agreement consistent with the programme’s debt sustainability objectives is essential to reduce fiscal risks, create space for critical spending, and restore debt sustainability," the NBU says.
The programme remains fully financed: US$153 billion under the baseline scenario and US$165 billion under the adverse scenario over the four-year programme period, including the use of approximately US$50 billion under the G7 ERA Loans mechanism (a non-repayable loan secured by revenues from frozen Russian assets). Full, timely and predictable external support – on terms consistent with debt sustainability – remains critical for the full financing of the programme.
The Executive Board of the International Monetary Fund approved a four-year Extended Fund Facility programme for Ukraine on 31 March 2023. Programmes are disbursed following quarterly reviews.
Background:
It was reported earlier that Ukraine could lose up to €1.5 billion in aid from the EU due to the failure to implement the reforms provided for in the Ukraine Facility programme. The Ukrainian government has not fulfilled three structural benchmarks provided for in the Ukraine Facility programme for the first quarter of 2025.Ukraine has received another €1 billion from the European Union from frozen Russian assets.During 2025-2026, Ukraine will receive US$3 billion from the surplus profits from Russian assets.The European Union has officially announced its intention to allocate nearly €1.9 billion for military support to Ukraine.
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