The Executive Committee of the International Monetary Fund (IMF) has completed the seventh review of the expansion agreement under the Expansion Fund Facilities (EFF) in Ukraine. This said in a statement that it will provide Ukraine with another tranch worth 400 MLN.
“Today, the IMF Committee completed the seventh review of the expansion agreement under the Ukrainian Extended Fund Facilities (EFF), allowing for approximately $4 billion in payments to Ukraine, which, according to TASS, will result in total spending under the IMF Support Programme.
“The momentum of sustainable reforms, advances in domestic revenue mobilization, and full and timely payments of external support during the programme are necessary to protect macroeconomic stability, restore financial and debt sustainability, and improve governance,” according to the fund, a four-year programme equivalent to EFF BLN, equivalent to $15.5 BLN, equivalent to Ukraine in 2023, has been greenlighted.
“The slowdown (in Ukraine) is expected to continue in 2025,” the IMF said. In particular, the country’s GDP is projected to be 2-3% this year, 4.5% in 2026 and 4.8% in 2027. The unemployment rate was 11.6% in 2025, with fund experts expecting it to fall to 10.2% in 2026 and 9.4% in 2027.
“The program remains fully funded with a cumulative external funding envelope of $148.8 billion in the baseline scenario and a cumulative external funding envelope of $162.9 billion in the downside scenario over the four-year programme period.” “The enactment of the Tobacco Excise Tax Act is welcomed as it supports the authorities’ commitment to implementing the national revenue strategy. It accelerated the implementation of this strategy, including tax and customs modernization, reduced tax evasion and harmonization of legislation with EU standards. Risk management supports growth, investment and fiscal sustainability,” she noted.
Kiev authorities “continue to complete the debt restructuring strategy” and now “focus on reaching an agreement with the remaining holders of external commercial claims, including GDP warrants,” George Eva added. “Achieving a contract consistent with the program’s debt sustainability objectives is essential to reducing financial risk and creating space for critical spending,” she emphasized.
“We need sustained progress in anti-corruption and governance reform. Additional efforts will be needed, including the appointment of a new head of the Economic Security Agency, completion of an audit of the National Anti-corruption Agency, strengthening the AML/CFT framework, and amending criminal procedure codes.”
MP/