Ukraine receives first $2.7 bln from IMF under new EFF program
MOSCOW. April 4 (Interfax) - Ukraine received the first $2.7 billion (SDR2 billion) tranche under a new four-year Extended Fund Facility (EFF) from the International Monetary Fund (IMF) on Monday, Ukrainian media reported, citing the Finance Ministry.
"Ukraine received the first tranche under the new program from the IMF today. Thanks to the provision of the funds we can continue to maintain economic stability in Ukraine, as well as cover priority state budget expenditures," Finance Minister Sergei Marchenko was quoted as saying.
The IMF executive board approved the new EFF of SDR11.6 billion, or about $15.6 billion on March 31.
The EFF program envisions a two-phased approach. The first phase, in 2023-2024, will focus be on implementing a robust budget for 2023 and bolstering revenue mobilization; sustaining steady disinflation and exchange rate stability; and contributing to long-term financial stability, including by preparing a deeper assessment of the banking sector health and further promoting central bank independence, the IMF said.
The second phase of the program will shift focus to structural reforms to entrench macroeconomic stability, support recovery and reconstruction, and enhance higher long-term growth, including in the context of Ukraine's European Union accession goals, the IMF said.
After the release of the first tranche, the program schedule calls for disbursing three tranches of SDR664 million ($893 million) each in mid-June and mid-October of 2023 and at the end of February 2024, based on the results of the corresponding program reports scheduled for the end of April, June and December 2023.
In 2024, there are plans to disburse another three tranches, including SDR1.67 billion ($2.246 billion) in mid-June and two tranches of SDR835 million ($1.123 billion) each in early September and December.
Another two tranches of SDR684 million ($920 million) each are scheduled for 2025, in early March and late August, after which there are plans for another three tranches of SDR966 million ($1.3 billion).