On October 11, the Board of Directors of the International Monetary Fund (IMF) decided to reduce the level of its commissions (charges, surcharges and commitment fees), which affect the amount of resources for countries that have financing programs from IMF.
This was reported by the IMF Director Kristalina Georgieva and the Deputy Executive Director for Ukraine in IMF Vladyslav Rashkovan.
As Rashkovan explained, the value of the Fundʼs resources depends on the dynamics of the key rates of the worldʼs central banks. To the cost of resources from other central banks, IMF already adds its own additional fees, commissions and allowances, the amount of which is set by the Board of Directors. IMF reduced them.
On average, commissions are reduced by 36%, which will reduce the IMF income by approximately $1.2 billion per year. The number of countries expected to be subject to additional fees in fiscal year 2026 will decrease from 20 to 13.
This decision will have a positive impact for Ukraine as well, whose total annual costs for using the IMF resources will decrease by approximately $130 million. The effect for the next five years is $650-700 million. Thus, costs for Ukraine are reduced by 38-39%, i.e. more than for other countries, Rashkovan noted.
- The Extended Fund Facility (EFF) for Ukraine from IMF has been in effect since 2023 and is designed for four years — until 2027. The total amount of the program is $15.6 billion. EFF is part of the international support package for Ukraine, which currently amounts to about $122 billion.
- On September 11, Ukraine and the International Monetary Fund agreed at the expert level on the fifth review of the Extended Fund Facility (EFF) for Ukraine for $15.6 billion. This means that Ukraine has fulfilled all quantitative criteria and structural beacons at the end of June, necessary to receive the sixth tranche from IMF for $1.1 billion. The IMF Board of Directors is expected to complete the fifth review of the EFF program for Ukraine before the start of its annual meetings on October 21-26.
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