Ukraine and IMF nearing agreement on $900 million tranche, Bloomberg reports
Photo: Prime Minister of Ukraine Denys Shmyhal and the IMF head Kristalina Georgieva (t.me/Denys_Smyhal)
Ukraine and the International Monetary Fund came close to paying 900 million dollars against the background of the suspension of aid from the United States, reports Bloomberg.
It is reported that representatives of Ukraine and the IMF expect to reach an agreement with employees this Thursday. However, the agreement still needs to be ratified by the IMF's executive board.
The payment will serve as a back-up plan in case the US is unable to provide aid. It will be the first of four that Ukraine expects this year, for a total amount of 5.4 billion dollars.
It is worth noting that this is the first time the IMF has lent to a country at war.
IMF program
Ukraine's agreement on the EFF with access in the amount of $15.6 billion was approved on March 31, 2023.
On December 11, 2023, the IMF Board of Directors approved the second review of the Extended Fund Facility program for Ukraine and allocated a tranche of $900 million under the program for 2023-2027.
The IMF also published an updated memorandum, which contains voluntary commitments of the country's authorities to take certain steps.
The memorandum with the IMF was signed by President of Ukraine Volodymyr Zelenskyy, Prime Minister Denys Shmyhal, Minister of Finance Serhiy Marchenko, and NBU Chairman Andriy Pishnyi.
Ukraine received political commitments from partners to provide $122 billion by 2027. It is expected that the IMF will provide Ukraine with more than 5 billion dollars in 2024.
Read more about the negotiations with the IMF in the RBC-Ukraine article New tranche and plan B for Ukraine's state budget: What to expect from negotiations with IMF.
