Ukraine and IMF agree on Extended Fund Facility programme's third review: new tranche expected

Ukraine and the International Monetary Fund (IMF) have reached an agreement at expert level on a third review of the Extended Fund Facility (EFF) totalling US$15.6 billion.

Source: Ukraine's Prime Minister Denys Shmyhal on Telegram

Quote: "We expect that the Fund's Executive Board will approve this decision very shortly," he wrote on Telegram.

Details: Shmyhal thanked the IMF for its consistent solidarity with and support of Ukraine.

"We anticipate assistance from the Fund in the amount of US$5.4 billion in 2024. With these funds, we can [divert our own funds towards] defence, which is our number one priority," Shmyhal explained.

He added that Ukraine needs US$37.3 billion in foreign funding this year.

"We expect other partners to allocate previously announced assistance packages and for Ukraine to receive them. This will ensure resilience in the fight against the enemy and pave the way for future victory," he concluded.

Andrii Pyshnyi, Head of the National Bank of Ukraine (NBU), summarised the results of the IMF mission in Warsaw and stated that a Staff Level Agreement (SLA) had been reached.

He said this means that the IMF acknowledges Ukraine's progress under the EFF programme. All structural benchmarks have been met, as well as all quantitative performance criteria except for one (Ukraine faced a slight shortfall in tax revenue due to border blockades).

In addition, Ukraine can expect the next tranche of funding from the IMF. The SLA requires approval by the IMF's Executive Board (in March), after which Ukraine will be able to receive the fourth tranche from the Fund, to the tune of approximately US$880 million.

Background: Earlier, it was reported that Ukraine is close to an agreement with the International Monetary Fund (IMF) to receive the next US$900 million tranche of funds as part of a US$15.6 billion loan.

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