Ukraine anticipates $1.1 bln IMF support by year-end

Ukraine is set to receive a $1.1 billion tranche from the International Monetary Fund (IMF) at the end of December.

This is reported by Prime Minister Denys Shmyhal in a Telegram update following his meeting with the IMF mission led by Gavin Gray, according to Rubryka.

Shmyhal expressed gratitude to the IMF team for conducting its mission work directly in Kyiv, emphasizing that their presence allows a deeper understanding of Ukraine's immediate needs.

"We successfully completed the fifth review of the EFF program at the end of October, meeting all the structural benchmarks for the sixth review.

Based on the results of the current mission, we anticipate receiving the next tranche of $1.1 billion at the end of December," Shmyhal stated.

He noted that, in this context, the parties discussed the continued implementation of reforms outlined in the cooperation memorandum with the IMF and Ukraine's progress, which the Fund holds in high regard.

The meeting participants also addressed macro-financial issues and Ukraine's needs for external financing.

The Prime Minister stated that the government has finalized the draft state budget in preparation for the second reading.

"We understand our approach to financing essential expenditures. We have solid backing from the IMF, the World Bank, the USA, and the EU through the Ukraine Facility program, as well as financing through the ERA instrument," Shmyhal highlighted.

Finance Minister Serhii Marchenko also participated in the meeting.

IMF program

On March 31, 2023, the IMF Board of Executive Directors approved a four-year program under the Enhanced Financing Facility (EFF) for Ukraine, amounting to $15.6 billion.

So far, Ukraine has received five tranches totaling approximately $7.6 billion, including $900 million in March and the latest $2.2 billion in July from this program.

In 2024, Ukraine is expected to receive two more tranches of $1.1 billion each, in October and December. The program has also garnered political commitments from international partners to allocate a total of $122 billion by 2027. Additionally, the IMF has developed a contingency plan, which envisions increased funding to $140.7 billion if the war in Ukraine extends further.

To date, Ukraine's state budget has received six tranches from the IMF's EFF program, totaling around $8.7 billion of the $15.6 billion initially allocated.

In October, the IMF re-established a permanent office in Kyiv, which had been closed since the onset of the full-scale war in 2022. As of November 11, an IMF mission is now in Ukraine to prepare for the sixth program review.