Ukraine has fulfilled all IMF structural benchmarks for EFF programme review
22 May 2024 09:26
Ukraine has fully fulfilled all structural benchmarks and other obligations under the EFF programme with the International Monetary Fund (IMF). The mission for the fourth review of the programme is expected to start its work in Warsaw at the end of May. Deputy Finance Minister Olha Zykova told Interfax-Ukraine news agency, "Komersant Ukrainian" reports
“All the structural milestones have been met… We can say that we are in the programme and fulfil our obligations,”
– she said on the sidelines of the second Luxembourg-Ukraine business forum “Rapid Recovery of Ukraine”, which took place in Luxembourg.
The official noted that the mission will also focus on structural work to ensure that Ukraine remains within the programme, and will develop a work plan for the upcoming fifth review by the end of the year. According to her, “there are no critical points”.
In the first months of this year, in the absence of EU and US funding, which was partially compensated by Japan and Norway, Ukraine has survived almost entirely on domestic measures: a tax on excess profits of banks, and early payment of dividends by the largest state-owned companies.
Ukraine is conducting and will continue to conduct active negotiations with both the US and the EU on the issue of mutual predictable fulfilment of its obligations, Zykova added.
What is known about the EFF programme
The four-year EFF programme of about $15.6 billion was approved on 31 March 2023 and is part of a $122 billion package of international support for Ukraine.
The first tranche of $2.7 billion was disbursed in early April, the second and third tranches of SDR664 million (about $881-890 million at the then exchange rate) in early July and mid-December 2023.
At the end of March this year, the Board of Directors approved the disbursement of the fourth tranche to Ukraine based on the results of the third review, when the fulfilment of obligations as of the end of December 2023 was assessed.
Three more tranches are envisaged for 2024 based on the results of the respective programme reviews: SDR1.670 billion ($2.21 billion) in mid-June, followed by SDR835 million each in early September and December.
Two tranches are scheduled for 2025: SDR684 million in early March and late August, followed by the last three tranches of SDR966 million.
