The International Monetary Fund completed the sixth review of the extended financing program for Ukraine and approved the allocation of a new tranche of $1.1 billion. This will allow Ukraine to receive a total of $5.4 billion in 2024 and bring the total amount of funding under the EFF program to $9.8 billion.
This was announced by the Minister of Finance of Ukraine Serhii Marchenko, emphasizing the importance of this support for the stability of the country's economy. In its report, the IMF noted the adaptability of the Ukrainian economy to difficult conditions, in particular: Fulfillment of all quantitative criteria and structural indicators by the end of September. Positive impact of reforms in the field of internal revenue mobilization. However, the Fund warned of rising risks due to strikes on energy infrastructure, labor market tensions and war-related uncertainty.
The IMF predicts the growth of Ukraine's GDP at the level of 4% in 2024, but this indicator may slow down to 2.5-3.5% in 2025. The main reasons are strikes on the energy infrastructure, military uncertainty and a tense situation on the labor market. The Foundation also emphasized the need to: Internal revenue mobilization. Further progress in judicial reform, including the creation of a new higher administrative court. Amendments to the Criminal Procedure Code.
The IMF positively assessed the increase in the discount rate by the National Bank of Ukraine and called for maintaining a flexible exchange rate. The Ministry of Finance of Ukraine reported that out of 35 structural beacons under the EFF program, 20 have already been implemented in the fiscal direction.
The current tranche will be a continuation of stable cooperation between Ukraine and the IMF, which provides financial support to the country in a difficult period.
