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Representatives of the Ukrainian authorities and experts of the International Monetary Fund (IMF) have reached an expert agreement on the sixth revision of the Extended Fund Facility (EFF) programme. The total amount of financing under the EFF programme for Ukraine is USD 15.6 billion for the period 2023-2027, TimeUkraineIsrael portal reports, citing the Ministry of Finance of Ukraine.
Formal approval of the agreement is expected in the coming weeks, when the IMF Executive Board of Directors will make a decision. Negotiations between representatives of the Ministry of Finance, the National Bank of Ukraine, other officials, and the IMF mission lasted from 11 to 18 November.
Ukraine’s key results in the implementation of the EFF programme
In preparation for the sixth review, Ukraine has successfully implemented five identified structural measures (beacons). In particular:
- amendments to the Customs Code were adopted in line with international standards;
- A review of pre-war approaches to medium-term budget planning was conducted;
- financial risk analysis was carried out and an action plan for various scenarios was prepared;
- assessed the financial condition of district heating companies;
- developed a strategy for managing state property, a dividend policy and a privatisation strategy for state-owned enterprises.
Ukraine has also completed an additional structural beacon in the energy sector, which underscores its commitment to further reforms. The IMF’s government team commended these efforts and the commitment of the Ukrainian government.
Importance of the programme for macrofinancial stability
Minister of Finance of Ukraine Sergii Marchenko noted that the agreement with the IMF on the sixth review opens up the possibility of receiving the next tranche of USD 1.1 billion. This will help maintain macro-financial stability and support the country’s European integration course.
In addition, the IMF mission stressed that Ukraine’s proposed budget for 2025 meets the requirements of the EFF programme. However, given the ongoing military aggression, external financial support remains essential.
Progress in the implementation of the National Revenue Strategy
One of the key conditions for the successful implementation of the programme is the implementation of the National Revenue Strategy. It is aimed at increasing domestic revenues, restoring fiscal stability, improving the business climate and ensuring compliance with European integration standards.
Financial support for Ukraine from the IMF
Since the start of the EFF programme, Ukraine has already received about USD 8.7 billion of the USD 15.6 billion envisaged. Overall, the IMF has become the third largest donor to Ukraine since the full-scale invasion, providing support worth around USD 11.4 billion.
The new tranche is expected to help Ukraine maintain economic stability in the face of military challenges and facilitate further integration into the European space.
