The Executive Board of the International Monetary Fund (IMF) has completed the seventh review of the Extended Fund Facility for Ukraine. This decision has allowed the Ukrainian authorities to secure $0.4 billion, which will be directed towards budget support. Consequently, the total amount disbursed under the IMF program will increase to $10.1 billion.
This is reported by Kyiv24
Economic Situation in Ukraine
The IMF notes that Ukraine’s performance under the program remains strong. All quantitative performance criteria were met by the end of December, as well as most of the structural benchmarks. An increase in the excise tax on tobacco products has been implemented, although the enactment of the law to establish the Higher Administrative Court was delayed.
“Russia’s war in Ukraine continues to inflict devastating social and economic damage on Ukraine. Despite this, macroeconomic stability is being maintained through prudent policy design and significant external support,” stated IMF Managing Director Kristalina Georgieva.
Outlook for 2025
According to IMF forecasts, Ukraine’s economic growth in 2024 will be resilient, but it is expected to slow in the second half of the year. A continued slowdown is anticipated in 2025 due to a tighter labor market, the impact of attacks on energy infrastructure, and ongoing uncertainty due to the war. The overall outlook remains “extremely uncertain.”
Georgieva also noted that the IMF program remains fully funded, with a total external financing volume of $148.8 billion under the baseline scenario and $162.9 billion under the downside scenario over the four-year program period. She emphasized the need for the National Bank of Ukraine to strengthen its monetary policy and to be prepared for further actions in case of worsening inflation expectations.
It is worth recalling that in February, IMF staff and Ukrainian authorities reached a staff-level agreement on the seventh review of the four-year Extended Fund Facility program amounting to $15.5 billion, paving the way for the eighth tranche of approximately $0.4 billion.