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IMF Board approved tranche of $880 million for Ukraine

IMF Board approved tranche of $880 million for Ukraine Photo: The IMF approved a tranche for Ukraine worth 880 million dollars (Getty Images)

On Thursday, March 21st, the IMF Board of Directors completed the third review of the Extended Fund Facility (EFF) agreement for Ukraine and approved the disbursement of a tranche of around $880 million, according to the International Monetary Fund (IMF) and the website of the Ministry of Finance of Ukraine.

Ukraine successfully met four key requirements outlined for the third review. These included adopting the National Revenue Strategy, developing a roadmap for managing state investments, devising measures for mobilizing revenues into the state budget for 2024, and passing legislation to enhance the institutional autonomy and efficiency of the Specialized Anti-Corruption Prosecutor's Office (SAP).

Ukrainian Finance Minister Serhii Marchenko emphasized that cooperation with the IMF is a crucial element in ensuring financial stability and stimulating economic recovery. The Ukrainian government is fully committed to fulfilling all EFF program conditions as it opens up opportunities for additional financial support. It's also essential to highlight that the implementation of such measures is necessary for Ukraine.

The successful completion of the review paves the way for Ukraine to receive the fourth tranche of financing under the EFF program, totaling approximately $880 million (or $663.9 million in SDRs) in the near future.

Throughout the duration of the IMF EFF program, Ukraine has already received three tranches of financing totaling approximately $4.5 billion. In 2024, the program envisages $5.4 billion in budgetary assistance to Ukraine.

The Ministry of Finance has disclosed the allocation of the €4.5 billion EU tranche. According to Finance Minister Serhii Marchenko, the funds will help timely and fully finance priority social and humanitarian expenditures from the state budget.

Furthermore, the EU has agreed to confiscate a significant portion of profits obtained from frozen Russian assets and transfer them to Ukraine.