IMF approves 5th review on EFF arrangement for Ukraine

MOSCOW. Oct 21 (Interfax) - The International Monetary Fund (IMF) Board of Directors approved on October 18 the fifth review of the Extended Fund Facility (EFF) arrangement for Ukraine, which is expected to result in the disbursement of a sixth tranche of $1.1 billion, Ukrainian Prime Minister Denis Shmygal said.

"The IMF Executive Board has approved the fifth review of the EFF arrangement, which will allow Ukraine to receive a new tranche of about $1.1 billion shortly. We will use the funds to cover important budget expenditures of a non-military nature," Ukrainian media quoted Shmygal's statement on a social network.

The review optimized the 2025 tranche schedule, which can help draw more resources to the state budget, he said.

Shmygal thanked the IMF for the consistent support to the financial stability of Ukraine.

As reported, Ukraine and the IMF reached a Staff Level Agreement (SLA) on the Fifth Review of the Extended Fund Facility (EFF) Arrangement for Ukraine on September 10.

The four-year EFF arrangement totaling about $15.6 billion was approved on March 31, 2023. It was announced as part of the international support package for Ukraine in the amount of $115 billion, which later grew to $122 billion under the baseline scenario.

The first tranche of $2.7 billion was allocated in early April, the second, third and fourth in the amount of SDR664 million (about $880-890 million at the then exchange rate) followed in early July and mid-December 2023, as well as at the end of March 2024. Ukraine received the fifth tranche of SDR1.66 billion ($2.2 billion) in early July following the fourth review of the program.

The IMF mission for the fifth review of the EFF arrangement was at work on September 4-1o. It met in Kiev for the first time since the beginning of the crisis.