NBU expects second review of IMF EFF program, next loan tranche at end of 2023

MOSCOW. Sept 26 (Interfax) - The second review of the International Monetary Fund's (IMF) Extended Fund Facility (EFF) program for Ukraine is scheduled for the end of 2023, the National Bank of Ukraine (NBU) said in connection with an IMF mission led by Gavin Gray beginning work on preparations for 2023 Article IV consultations and the review.

"Given successful fulfilment of the program, Ukraine will be able to receive one more tranche this year and the total amount of received financing will increase to $4.5 billion," Ukrainian media reported, citing an NBU statement on Telegram.

The four-year EFF for Ukraine was approved on March 31, 2023 and the first tranche of $2.7 billion was released in early April. The program calls for the release of another three tranches of 664 billion SDR (about $900 million at current exchange rate) after IMF missions assess Ukraine's fulfilment of obligations as of the end of April, June and December. The country received the second tranche in July.

Given a positive conclusion from mission experts, a decision on releasing the third tranche is expected to be made in the second half of October or in November. However, Ukraine has still not met all the structural benchmarks of the program needed for the second review on its fulfillment.

The NBU said the mission will work in Warsaw, both online and offline. IMF representatives will hold expert meetings with representatives of the NBU and Finance Ministry.

The talks will focus on Ukraine's fulfilment of obligations set out in the Memorandum on Economic and Financial Policies, as well as the macroeconomic situation, the state of the financial sector, implementation of measures to ensure macrofinancial stability and progress on reforms prescribed by the EFF, the NBU said.

Ukraine underwent the first program review in June, having fulfilled all obligations. The country has received two tranches under the program totaling about $3.6 billion.