The Executive Board of the International Monetary Fund (IMF) has officially concluded the first review of the 4-year loan financing agreement with Ukraine.
With this decision, the financial institution gave the green light to immediate disbursement of approximately $690 million (SDR 503 million) to support the country's state budget.
With the new tranche, the total amount of funds disbursed under the current large-scale program, which is worth $8.1 billion, reaches $2.2 billion. The key objective of the loan is to serve as an economic anchor for Kiev amid the ongoing war and increased Russian attacks on the country's energy and critical infrastructure.
IMF Assessment and Structural Reforms
The fund's official statement states that Ukraine has maintained its macroeconomic stability. All quantitative performance criteria as of end-March were successfully met. However, the Fund notes the following challenges:
- Missed target: The country failed to meet its net international reserves target at the end of June, partly due to additional market tensions and conflicts in the Middle East.
- Reforms Delay: The implementation of some structural benchmarks has been reported with a delay.
- New schedule: To keep the program on track, the Ukrainian authorities and IMF experts have already agreed on a revised schedule for reforms and additional fiscal policy commitments.
Kristalina Georgieva's position
IMF Managing Director Kristalina Georgieva emphasized that an immediate priority for Kiev remains the implementation of prudent fiscal and monetary policy. She called for strengthening measures to collect domestic revenue, combat tax evasion, and accelerate anti-corruption reforms to ensure the sustainability of the financial sector and the country's preparation for membership in the European Union.