IMF prepares tranche for Ukraine: Decision expected soon
Photo: IMF to decide on Ukraine's tranche by October 21 (Getty images)
During a briefing in Washington, IMF Communications Director Julie Kozack stated that the IMF's Board of Directors will consider allocating a $1.1 billion tranche to Ukraine. The decision is expected to be made before the IMF and World Bank Annual Meetings, which will occur from October 21-26.
Kozack noted that on September 10, IMF staff and Ukrainian authorities reached a staff-level agreement on the fifth review.
"Under the EFF arrangement, subject to approval by our Executive Board, Ukraine would have access to $1.1 billion. Board consideration of the Fifth Review is expected before the Annual Meeting," she said.
According to Kozack, during the fourth review of the program, Ukraine's financing gap for 2025 was projected to be nearly $26 billion.
"And our Staff and our team is in the process of updating these projections as part of the Fifth Review, which is currently underway," Kozack added.
IMF agreement
It should be recalled that Ukraine’s agreement with the IMF under the EFF program for $15.6 billion was approved in March 2023. Five tranches, totaling about $7.6 billion, have already been received under the program, including $900 million in March and the latest tranche of $2.2 billion in July.
Ukraine is expected to receive two more tranches of $1.1 billion each (in October and December) in 2024.
As part of the program, Ukraine also received political commitments from partners for $122 billion in funding through 2027. Meanwhile, the IMF has developed a negative scenario for Ukraine's economy in the event of a protracted war. In this case, total funding for Ukraine could increase to $140.7 billion.
