19 Feb 2024 10:30

IMF mission and Ukraine begin negotiations on next EFF program review

MOSCOW. Feb 19 (Interfax) - The International Monetary Fund mission and representatives of the Ukrainian government have started negotiations regarding the third review of the implementation of the Extended Fund Facility (EFF), Ukrainian media reported, citing a press release from Ukraine's Finance Ministry.

"On February 17, the IMF mission led by Gavin Gray and representatives of the Ukrainian government began negotiations in the context of the third review of the EFF program. [...] The purpose of the mission is to discuss the status of Ukraine's compliance with the terms of the memorandum on economic and financial policies," the press release said.

Meeting participants from Ukraine included representatives from the Finance Ministry, the National Bank, and other government bodies responsible for economic policy, energy, and fighting corruption.

The four-year EFF program was approved in March 2023. A short time later, the first tranche of $2.7 billion was allocated, followed by the second and third tranches of 664 million SDR (about $881-890 million at the then current exchange rate), in July and December, respectively.

The program's schedule assumes the allocation of another tranche to Ukraine at the end of February 2024 based on the results of the third review, when the fulfillment of obligations for the period through December 2023 is assessed. There are three more tranches in 2024: SDR 1.67 billion ($2.226 billion) in mid-June, then SDR 835 million ($1.113 billion) in early September and in December.

Two additional tranches are planned for 2025: 684 million SDR ($912 million) each in early March and late August, after which three more tranches are planned for 966 million SDR ($1.288 billion).