The International Monetary Fund (IMF) and Ukraine have reached another important agreement on the fifth stage of the review of the four-year Enhanced Financing Program (EFF). Thanks to the effective work of the IMF mission in Kyiv, Ukraine will have access to financing in the amount of 1.1 billion dollars. It became known from the official message IMF press office.
The Ukrainian government fulfilled all the quantitative criteria and structural tasks set by the IMF, which made it possible to complete the next revision of the program. In addition, the parties agreed on new parameters of economic policy and reforms aimed at preserving macroeconomic stability in the conditions of martial law.
Gavin Gray, head of the IMF’s mission in Ukraine, emphasized that the agreement with Ukraine has been reached at the staff level, and final approval by the IMF’s executive board is expected in the coming weeks.
The Prime Minister of Ukraine, Denys Shmyhal, commented on this event, noting that it once again confirms the consistency of the government in carrying out reforms.
“We await the approval of this agreement by the Executive Board of the IMF. After that, Ukraine will receive $1.1 billion. Funds from partners help our government finance all non-military budget expenditures. This allows us to direct our internal resources to the country’s defense capability.”, – emphasized Shmyhal.
Despite the stability of Ukraine’s economy in the first half of 2024, the IMF notes that economic prospects remain uncertain due to ongoing military operations.
“The ongoing war will lead to new needs for external financing, requiring strong political efforts from the authorities and support from donors”, – noted the IMF.
According to IMF forecasts, Ukrainian GDP grew by more than 6% in the first quarter, the inflation rate remained at a moderate level, and the country’s international reserves remained stable. According to the results of the year, GDP growth is expected to be 3%, with further stabilization at the level of 2.5-3.5% in the next 12 months. At the same time, inflation may rise to approximately 9% by the end of the year.
