Ukraine receives over $1 billion from IMF under Extended Fund Facility programme

Ukraine has received $1.1 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme to cover critical budgetary expenses, Ukrainian Prime Minister Denys Shmyhal announced.

"Ukraine has received $1.1 billion from the IMF. This is the sixth tranche under the overall programme within the EFF mechanism," Shmyhal stated on his Telegram channel, Caliber.Az reports.

The Prime Minister noted that the funds had already been deposited into Ukrainian accounts and would be allocated to finance critical budgetary needs. To date, Ukraine has received a total of $9.8 billion under this programme.

In March 2023, the IMF approved a four-year programme for Ukraine with financing amounting to $15.6 billion.

Thus, Ukraine’s authorities, reliant on financial assistance from Western partners, regularly report on meeting the conditions set by donors, which often include implementing "recommended" reforms. Moreover, Western allies are increasingly linking continued support and Ukraine's EU integration process to the fulfilment of these conditions, including legislative amendments.

Last autumn, a leaked letter from Michael Pyle, US Deputy Assistant to the President for National Security Affairs, to Ukrainian officials caused significant controversy in Ukraine. The document outlined a list of priority reforms Kyiv was required to implement to secure continued support from Washington.

Yaroslav Zheleznyak, a member of Ukraine’s Verkhovna Rada, referred to this approach as "money in exchange for reforms," while David Arakhamia, head of the parliamentary faction of the ruling Servant of the People party, acknowledged that the Rada would prioritize bills essential to ensuring ongoing funding from Western donors.

By Aghakazim Guliyev