IMF, Ukraine reach staff-level agreement for $400 million tranche

Officials from the International Monetary Fund (IMF) and the Ukrainian government have reached a staff-level agreement on the seventh review of Ukraine's $15.5 billion Extended Fund Facility (EFF) programme. 

The agreement sets the stage for the potential release of approximately $400 million, pending approval by the IMF's board, Caliber.Az reports via foreign media. 

The move follows eight days of intensive negotiations between IMF experts and Ukrainian officials, during which the two sides addressed pressing issues amid Ukraine's ongoing conflict and economic challenges. 

“Ukraine's four-year EFF Arrangement with the IMF continues to provide a strong anchor for the authorities' economic program in times of exceptionally high uncertainty,” said Gavin Gray, an IMF official who led the IMF team’s visit, in the statement.

He added, “The program remains on track on the back of critical external support.” The IMF’s endorsement of the agreement comes at a time when Ukraine faces significant uncertainty over the future of its international financial backing. This agreement signals continued support from the global community but also highlights the ongoing challenges for Ukraine as it navigates both the war and its economic recovery.

Ukraine's Ministry of Finance also issued a statement following the announcement, affirming that the country “continues to work fruitfully on the implementation of the jointly agreed reforms,” underscoring its commitment to the terms of the agreement. The approval of this additional $400 million will provide crucial support for Ukraine as it grapples with the economic strain caused by the ongoing conflict. However, the release of the funds is contingent on the IMF’s board approval, which is expected in the coming weeks. 

The International Monetary Fund (IMF) is an international financial institution established to promote global economic stability and growth. Its primary mission is to ensure the stability of the international monetary system, provide financial assistance to countries facing balance-of-payments problems, and offer policy advice to foster economic development. 

The IMF provides loans to member countries in need, often tied to specific economic reforms aimed at stabilizing and restructuring their economies. With 190 member countries, the IMF plays a critical role in managing global economic crises and promoting international cooperation on economic issues. The organization is headquartered in Washington, D.C., and is governed by a board of governors representing its member countries.

By Naila Huseynova