Ukraine and IMF reach staff-level agreement on the first review of the Extended Fund Facility (EFF) Arrangement

Over the past weeks, the leadership of the Ministry of Finance of Ukraine, the National Bank of Ukraine, other representatives of the Ukrainian authorities, and the International Monetary Fund (IMF) mission team held a series of discussions in the context of the first review of the Extended Fund Facility (EFF) Arrangement.

As a result, the Ukrainian authorities and the IMF mission reached a staff-level agreement (SLA). The agreement remains subject to approval by the IMF Executive Board, which is expected to consider the review in the coming weeks.

All end-March quantitative performance criteria and indicative targets were met. The parties also agreed on a revised timeline for previously agreed reforms, corrective measures to address implementation delays, and additional policy commitments.

The IMF emphasized the importance of maintaining fiscal sustainability through prudent budget management, enhanced domestic revenue mobilization, and continued tax policy and administration reforms. Key priorities include reducing the size of the shadow economy, strengthening tax administration, combating tax evasion, and addressing abuses of the simplified taxation regime.

“Cooperation with the IMF remains an essential pillar in safeguarding fiscal and monetary stability and supporting Ukraine’s economic recovery. The measures under the program help maintain the resilience of Ukraine’s financial system despite the ongoing war. I am grateful to all parties involved for the productive discussions held over the past weeks. Reaching a staff-level agreement on the first review paves the way for the next disbursement under the program in the amount of USD 690 million,” said Minister of Finance of Ukraine Sergii Marchenko.

The total financing under the EFF Arrangement amounts to USD 8.1 billion, of which the first tranche of USD 1.5 billion has already been disbursed to the State Budget of Ukraine.

The new EFF program covers the period of 2026-2029 and takes into account the current macroeconomic and security challenges facing Ukraine amid russia’s full-scale invasion. It replaced the previous arrangement launched in March 2023 and reaffirms the IMF’s commitment to providing continued support to Ukraine.

The International Monetary Fund is the third-largest provider of financial assistance to Ukraine since the start of russia’s full-scale invasion, having disbursed approximately USD 14.9 billion.