IMF Approves $2.2 Billion for Ukraine Amid Economic Resilience
The Executive Board of the International Monetary Fund (IMF) concluded its fourth review of Ukraine's financing agreement under the Extended Fund Facility (EFF) on Friday, June 28.
Consequently, the IMF has approved a $2.2 billion credit tranche for Kyiv, as announced by the IMF press service. These funds are set to be disbursed to the Ukrainian budget in the coming days, according to DW.
"Despite the challenging environment, Ukraine's economic performance under the EFF remains robust. All quantitative performance criteria as of the end of March were met, and all structural benchmarks until the end of June were either achieved on schedule or with minor delays," the statement reads. IMF experts highlight that "the Ukrainian economy continues to display resilience, despite highly uncertain prospects."
In late March, Kyiv received the third loan tranche from the IMF, totaling $880 million. The IMF had previously approved a $900 million tranche in December 2023. In March 2023, the IMF allocated $15.6 billion to Ukraine under the Extended Credit Facility for a 48-month period. According to the IMF, the total disbursement under the EFF program, including the new tranche, will amount to approximately $7.6 billion.
The IMF has revised down its GDP growth forecast for Ukraine in 2024 to between 2.5% and 3.5%, down from the 3.5% forecasted in April. For 2025, the GDP growth forecast has been revised down from 6.5% to 5.5%.
"Russia's invasion of Ukraine continues to have a devastating social and economic impact. Despite the ongoing conflict, Ukraine has managed to maintain macroeconomic and financial stability through skillful governmental policies and substantial external assistance. The economy demonstrates resilience, reflecting the adaptability of households and businesses," stated Kristalina Georgieva, Managing Director of the IMF.
Translation by Iurie Tataru
