Ukrainian authorities and IMF reach Staff Level Agreement on the First Review Under the Extended Fund Facility (EFF) Arrangement

Ukrainian authorities and staff of the International Monetary Fund (IMF) have reached a staff-level agreement on an updated set of economic and financial policies for the first review of the four-year Extended Fund Facility (EFF) Arrangement. The staff-level agreement is subject to approval by the IMF Executive Board.

In the period from May 23 to 30, 2023, the Ukrainian authorities and the IMF held a series of discussions regarding the implementation of structural benchmarks, other measures and indicators of the program supported by the Fund under the Extended Fund Facility (EFF) Arrangement. The meetings were held in Vienna (Austria) and online.

“Thanks to the effective and coordinated work of the Government of Ukraine, the National Bank of Ukraine and other authorities, all quantitative performance criteria for end-April and structural benchmarks through end-May were met. A successful review of the program paves the way for further financing from the Fund in the amount of USD 900 million (SDR 663 million). During the mission, IMF experts noted the efforts of the Ukrainian authorities in maintaining macro-financial stability in conditions of high uncertainty and constant russian attacks,” said Minister of Finance of Ukraine Sergii Marchenko.

Currently, the priorities of the Ukrainian Government under the EFF Program remain the support of economic and financial stability in conditions of extremely high uncertainty, the recovery of debt sustainability and the support of Ukraine’s recovery on the way to EU accession.

“We are continuing the path of implementing structural reforms, which are the basis of sustainable economic growth, while at the same time creating the necessary environment for attracting private investment for the further recovery of Ukraine,” said Sergii Marchenko.

Additional Information

On March 31, 2023, the IMF Board approved a new four-year Extended Fund Facility (EFF) Program for Ukraine with financing in the amount of USD 15.6 billion (SDR 11.6 billion). This program is part of the overall package of support to Ukraine by international partners in the amount of USD 115 billion. Simultaneously with the approval of the program, the IMF allocated the first tranche under the program in the amount of USD 2.7 billion (SDR 2 billion). During the duration of the program, eleven reviews are planned, based on the results of which the state of program implementation is assessed, the need to update measures and indicators supported within the program is agreed upon, and a decision is made on the allocation of the next tranches.