The International Monetary Fund (IMF) has approved a new funding tranche for Ukraine amounting to $0.5 billion.
This information was provided by the National Bank of Ukraine.
The IMF Board of Directors confirmed the eighth review of the Extended Fund Facility (EFF) program on June 30, 2025.
This tranche will provide Ukraine access to 0.37 billion SDR (approximately $0.5 billion), which will be allocated to support the state budget. Consequently, the total financing under the program will reach $10.6 billion, according to the National Bank.
The program's performance indicators remain strong, with all efficiency criteria met by the end of March 2025. New structural benchmarks have been introduced, and some deadlines have been revised to ensure the completion of key reforms.
Considering updated balance of payments needs, Ukraine has requested changes to the EFF payment structure for this year, while the overall program size remains unchanged at $15.5 billion.
The economic outlook for Ukraine remains stable, with growth projected at 2-3% for 2025. However, risks are extremely high and require a clear action plan if they materialize.
The IMF noted that the still elevated inflation levels justify the National Bank's strict monetary policy, and the central bank should be prepared for further tightening if necessary. Foreign reserves remain at an adequate level thanks to significant external support.
The financial sector is stable but requires close supervision due to heightened risks. Improving capital market infrastructure is crucial for attracting foreign private investments.
The Fund states that the ongoing war necessitates the adoption of an additional budget for 2025. Restoring fiscal stability and meeting priority expenditures requires decisive efforts to implement the National Revenue Strategy and modernize tax and customs services.
These reforms, along with improving public investment management and fiscal risk management, are critical for stimulating growth and investment inflow.
The Ukrainian government continues to work towards completing its external debt restructuring strategy for Eurobonds. Achieving an agreement in line with debt sustainability objectives is essential for reducing fiscal risks and creating space for critical expenditures.
The program remains fully funded: $153 billion under the baseline scenario and $165 billion under the negative scenario over the four-year period, including the utilization of approximately $50 billion through the G7 ERA Loans mechanism. Timely and predictable external support on debt sustainability terms remains vital for the full financing of the program.
The IMF Board of Directors approved the extended funding program for Ukraine on March 31, 2023. Disbursements under the program are made based on quarterly reviews.
