Today, the Executive Board of the International Monetary Fund (IMF) has completed the fifth review of the Extended Fund Facility (EFF) Arrangement for Ukraine.

The IMF leadership noted the progress of the Ukrainian side in performing the terms of the EFF. For the first time, Ukraine has successfully passed five reviews of the IMF financial program.

Ukraine has met all structural benchmarks that were envisaged for the fifth review, and two more ahead of schedule. In total, five have been completed:

• Develop a methodology to assess the effectiveness of tax privileges, including their cost to the budget.
• Adopt a new law on the Economic Security Bureau of Ukraine.
• Identify major public companies severely affected by the war and prepare a review of potential fiscal and quasi-fiscal costs.
• Adopt amendments to the Customs Code in line with international best practice. (ahead of schedule)
• Based on the outcomes of a roadmap on development of PIM procedures, adopt a government decree with an action plan and timeline that provides clear linkages between MTBF and capital expenditures. (ahead of schedule)

Overall, Ukraine has already met 28 structural benchmarks, including 19 in the fiscal area, under the EFF.

“The EFF program is the most effective for Ukraine in terms of the number of successful reviews. This demonstrates Ukraine’s ability and readiness to implement reform measures even in the face of a full-scale war. Once again, I would like to emphasize that cooperation with the IMF is an integral part of maintaining fiscal and monetary stability and stimulating economic recovery. IMF staff support along with the mobilization of external financing continue to be stabilizing factors for our financial system,” said Minister of Finance of Ukraine Sergii Marchenko.

The successful review paves the way for Ukraine to receive a tranche of about USD 1.1 billion in the nearest future. The fifth review also optimized the schedule of tranches for 2025, which will allow the state budget to receive more funds under the EFF next year.

The State Budget of Ukraine has already received five tranches under the IMF EFF Arrangement totaling about USD 7.6 billion, including about USD 3.1 billion in 2024. In total, the program provides USD 5.4 billion in budgetary assistance to Ukraine in 2024.

Additional information

On March 31, 2023, the IMF Executive Board approved a four-year Extended Fund Facility (EFF) program for Ukraine with funding of about USD 15.6 billion (SDR 11.6 billion).

The program is part of an international support package for Ukraine that currently amounts to about USD 151 billion for 2023-2027.