The Board of Directors of the International Monetary Fund approved the fourth revision of the Enhanced Financing Mechanism (EFF) for Ukraine.
This was reported to the IMF.
Thus, Ukraine will receive another tranche in the amount of almost $2.2 billion (1.66 billion SDR ), aimed at supporting its budget.
According to Yaroslav Zheleznyak, a member of the Parliamentary Committee on Finance, Tax and Customs Policy, this will be the fifth tranche under the program, which is a record for Ukraine at least since the beginning of zero. The previous one was according to the 2015 program — four tranches.
The approval by the IMF board of directors of the fourth revision of the financing program means that Ukraine has fulfilled all quantitative criteria under the program at the end of the first quarter and all structural beacons at the end of April 2024.
According to Danylo Hetmantsev, head of the Committee on Finance, Tax and Customs Policy, Ukraine remains in the program, which covers most of the package of external financing in the amount of almost $122 billion. The allocation of this package is calculated for the duration of the EFF program (second quarter 2023 — first quarter 2027).
As reported by Zheleznyak, the schedule of the next reviews will be as follows:
- the fifth revision — from September 1, 2024. About $1.1 billion (SDR 835 million). Ukraine must fulfill quantitative indicators by the end of June;
- the sixth revision — from December 1, 2024. Also by about $1.1 billion (835 million SDR). Ukraine must fulfill quantitative indicators at the end of September and IMF structural beacons for the period;
- the seventh revision — from March 1, 2025. For $0.9 billion (684 million SDR). Ukraine must fulfill quantitative indicators for the end of December 2024 and beacons for the period.
The assessment will take place on the basis of the updated memorandum on economic and financial policy and an updated set of structural beacons.
Regarding the obligations under the reforms, Hetmantsev said that he does not see any significant problems with passing the next, fifth review. According to the structural beacons of Ukraine , the adoption of the law on restarting the Bureau of Economic Security (BES), which was supposed to be adopted by the end of June (the parliament adopted it on June 20), should be counted. It also maintains a permanent rule that the state can capitalize only systemic banks, but cannot invest capital in other banks.
The Fund conducts quarterly monitoring of EFF implementation. This is a guarantee that the program, the main goal of which is to support macro-financial stability and implement structural reforms on the way to EU membership, is being implemented.
In case of successful review, Ukraine will receive the sixth tranche in the amount of $1.1 billion under the program in September.