IMF approves $2.2 billion tranche for Ukraine's budget support
The International Monetary Fund has approved a $2.2 billion disbursement to Ukraine under the Extended Fund Facility (EFF) program, with funds directed towards budget support, the organization announced on its website.
The IMF notes that despite challenging conditions, Ukraine's performance under the EFF program remains strong – the country met all quantitative performance criteria for end-March, and all structural benchmarks were met on time or with short delays by end-June.
One of the IMF's key benchmarks that needed to be met by the end of June 2024 was the adoption of a law to reboot the Economic Security Bureau of Ukraine (ESBU). Parliament passed the document on June 20, and President Volodymyr Zelenskyy signed it on June 28.
"The Ukrainian economy continues to be resilient although the outlook remains subject to exceptionally high uncertainty," the statement reads.
A sustained reform momentum and timely disbursement of external support are crucial for maintaining macroeconomic stability, restoring fiscal and debt sustainability, and strengthening institutional reforms to pave the way for Ukraine's accession to the European Union, the organization states.
Prime Minister of Ukraine Denys Shmyhal reported that the IMF-allocated funds help the Ukrainian government finance critical budget expenditures, social benefits, and salaries for doctors and teachers.
"To date, Ukraine has never passed four reviews in any IMF program (this is the fourth in the EFF – ed.). This is evidence of how highly our partners value our changes and our work," the official noted.
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