Ukraine, IMF nearing $900 mln tranche agreement – Bloomberg

Representatives of Ukraine and the IMF expect to reach an agreement with the staff as early as this Thursday. However, the agreement still needs to be ratified by the IMF Executive Board.

The disbursement will be a backup plan in case the US fails to provide assistance. It will be the first of four disbursements that Ukraine expects this year, totaling $5.4 billion.

If the US Congress fails to approve more than $60 billion in assistance to the country for this year, IMF's funds will likely become the second-largest financial lifeline for Kyiv after the EU's grants and loans.

On 31 March 2023, the IMF Board of Executive Directors approved a four-year program under the Extended Fund Facility (EFF) for Ukraine in the amount of $15.6 billion.

In July, Ukraine received $890 million from the IMF as part of a larger program.

On 10 November, PM Denys Shmyhal announced that an agreement had been reached with the IMF at the staff level on a second review of the EFF program, which would make it possible to allocate the third tranche to Ukraine.

In October, the International Monetary Fund opened a permanent office in Kyiv, which had been closed since the start of the full-scale war in Ukraine in 2022.

On December 12, the IMF Executive Board approved the second review of the EFF program for Ukraine to receive a third tranche of $900 million.