On April 3, the first tranche of USD 2.7 billion (SDR 2 billion) from the International Monetary Fund (IMF) has been transferred to the general fund of the state budget of Ukraine.
The funds were received under the new four-year Extended Fund Facility (EFF) Program for Ukraine, which totals USD 15.6 billion (SDR 11.6 billion).
“Today Ukraine received the first tranche under the new IMF program. Thanks to the funds received, we are able to continue to maintain economic stability in Ukraine, as well as to ensure priority expenditures of the state budget,” said Minister of Finance of Ukraine Sergii Marchenko.
On Friday, March 31, the IMF Board approved a new four-year Extended Fund Facility (EFF) Program for Ukraine with financing in the amount of USD 15.6 billion (SDR 11.6 billion).
The program includes two phases. The first phase, planned for 2023-24, will focus on implementing a robust budget for 2023 and increasing revenue mobilization, including by avoiding new measures that might erode tax revenues. The first phase also provides inflation reduction and stability of exchange rate, including through maintaining adequate foreign exchange reserves. In addition, measures to promote long-term financial stability are expected, including by preparing a deeper assessment of the banking sector health and further promoting central bank independence.
During the second phase of the program, the focus will be on reforms that will help to support post-war recovery and reconstruction as efficiently as possible, and will help Ukraine implement the necessary measures on the way to European integration. Long-term economic growth is also one of the priorities of the second phase of the EFF program.