IMF approves new Extended Fund Facility Arrangement for Ukraine worth USD 8.1 billion

The Executive Board of the International Monetary Fund has approved a new four-year Extended Fund Facility Arrangement for Ukraine totalling USD 8.1 billion. The first tranche – around USD 1.5 billion – will be disbursed to Ukraine in the near future. The funds will be directed towards financing the budget deficit and supporting macrofinancial stability. This was announced by Prime Minister Yulia Svyrydenko.

“It is very important for us that in the fifth year of full-scale war, amidst systemic attacks on the energy sector, Ukraine gets guaranteed international financial support from its partners and resources for the stable functioning of the state.

The IMF-supported programme is part of a broader financial framework designed to cover the projected state budget deficit of USD 136.5 billion over four years,” the Prime Minister emphasised.

According to the Prime Minister, the programme envisages the continuation of reforms that have ensured macroeconomic and financial stability in previous years: “Importantly, the new cooperation programme with the IMF for Ukraine is an anchor for all international financial support, in particular for obtaining the EUR 90 billion loan from the European Union.”

In addition to funding from the EU, as Yulia Svyrydenko noted, this also includes financing from G7 countries, international financial institutions, as well as a reduction in debt-service payments on official debt through a debt-relief mechanism. Partners have confirmed the continuation of the current moratorium on servicing official debt and their readiness to complete restructuring once the situation stabilises.

The Prime Minister expressed gratitude to the entire team involved in preparing the decision: President Volodymyr Zelenskyy, the Government, the Ministry of Finance, the National Bank, Ukraine’s representative at the IMF, and all international partners. “I would like to express my special gratitude to the Fund’s management for their consistent support of Ukraine and personally to Kristalina Georgieva, who visited Kyiv this January,” said Yulia Svyrydenko.