IMF to consider release of third EFF tranche to Ukraine Dec 11

MOSCOW. Dec 7 (Interfax) - The board of the International Monetary Fund (IMF) will consider on December 11 the second review of the Extended Fund Facility (EFF) program for Ukraine, which calls for the release of a third tranche of 664 billion SDR (about $880 million at current exchange rate).

The meeting agenda also includes Article IV consultations and requests to change the effectiveness criteria and not comply with the effectiveness criteria, materials on the IMF website said.

NBU governor Andrei Pyshny was reported as saying by Ukrainian media that Ukraine has signed an updated memorandum on economic and financial policy under the program. He expressed hope that the IMF board will make an affirmative decision.

"If we successfully get through the second review and the IMF approves the next tranche, it means our international partners have renewed their assurances for 2024, because without this the program would not happen. And this means that we have a decent chance of receiving the level of financing that we're counting on," Pyshny said.

The IMF reported on November 13 that a staff-level agreement (SLA) was reached on an updated set of economic and financial policies for the second review of the EFF).

"All quantitative performance criteria for end-June and indicative targets for end- September were met. The majority of structural benchmarks were also met, paving the way for the Executive Board's consideration, which would enable disbursement of about $900 million (SDR663.9 million)," the IMF said.

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 and the second tranche of $890 million was released in early July.