Ukraine will receive almost a billion dollars: the IMF announced when an important decision will be made

The Board of Directors of the International Monetary Fund (IMF) will decide on the allocation of a $1.1 billion macro-financial tranche to Ukraine by October 21. By this date, the fifth review of the Extended Fund Facility (EFF) program will be completed.

This was announced by IMF Communications Director Julie Kozak at a briefing on October 4. She noted that in total, the EFF program provides $5.4 billion in budgetary assistance to Ukraine in 2024.

"Subject to the approval of our Board, Ukraine will have access to $1.1 billion under the EFF agreement. The Board is expected to consider the fifth review before the annual meeting," she said, referring to the IMF Board meeting scheduled for October 21-26.

Kozak reminded that at the time of the fourth review, Ukraine's financing gap for 2025 was projected at almost $26 billion. The IMF team is currently in the process of updating its forecasts as part of the fifth review, which is currently underway.

What is the EFF: details of the IMF support program

The current EFF financing program is designed for four years and allocates about $15.6 billion. The IMF and Ukraine approved it on March 31, 2023, and the first tranche of $2.7 billion was disbursed in early April 2024. The second tranche of $890 million was transferred in July.

As of the end of June, Ukraine has met all the quantitative criteria as well as the structural benchmarks required for the fifth EFF review. However, for the next tranches of the IMF, sustainable economic growth is needed, as well as strengthening the independence, competence, and credibility of anti-corruption and judicial institutions, so the IMF requires Ukraine to

• Establishment of a new Supreme Administrative Court;
• Reform of the Accounting Chamber of Ukraine;
• external audit of the NABU;
• restoration of the full composition of the Supervisory Board of Ukrenergo by the end of December.

OBOZ.UA also reported that the key task of Ukraine in the framework of the current EFF program is to mobilize internal state budget revenues. This applies not only to cutting costs and introducing financial restrictions but also to increasing tax revenues, which the authorities plan to do by raising some tax rates and de-shadowing.

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