IMF approves US$8.1bn four-year funding programme for Ukraine
Prime Minister Yuliia Svyrydenko has said the Executive Board of the International Monetary Fund (IMF) has approved a new four-year Extended Fund Facility programme for Ukraine worth US$8.1 billion.
Source: Svyrydenko on X (Twitter)
Details: Svyrydenko said that Ukraine is expected to receive the first tranche soon, amounting to about US$1.5 billion, which will be used to "cover the budget deficit and support macrofinancial stability".
Quote: "The IMF-supported programme is part of a broader financial framework designed to cover the projected state budget deficit of US$136.5 billion over four years.
It requires the continuation of reforms that have ensured macroeconomic and financial stability in previous years.
The new cooperation programme with the IMF for Ukraine is an anchor for all international financial support, in particular for obtaining the €90 billion loan from the European Union."
Details: Svyrydenko added that, alongside EU funding, the package also includes support from G7 countries, international financial institutions and a reduction in debt service payments on official debt through debt relief mechanisms.
Quote: "The partners confirmed the continuation of the current moratorium on servicing official debt and their readiness to complete the restructuring after the situation stabilises."
Background:
- The IMF agreed to drop the prior actions required for a new US$8.1 billion lending programme for Ukraine, removing requirements on VAT for sole traders, duties on parcels, a tax on digital platforms and the retention of the wartime levy.
- It was reported in January that the IMF Executive Board could approve the new four-year Extended Fund Facility programme for Ukraine in February, depending primarily on Ukraine meeting the agreed prior actions.
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