The mission of the International Monetary Fund (IMF), which worked in Kyiv from 20 to 27 May, has completed their work regarding the Eighth Review of the Extended Fund Facility (EFF) Arrangement for Ukraine.
The IMF team and the Ukrainian authorities have reached Staff-Level Agreement (SLA). The agreement is subject to approval by the IMF Executive Board, with Board consideration expected in the coming weeks. This will unlock for Ukraine access to about SDR 0.37 billion (USD 0.5 billion), bringing total disbursements under the program to USD 10.65 billion. The overall size of the program remains unchanged at USD 15.5 billion.
“Ukraine’s four-year EFF Arrangement with the IMF continues to provide a strong anchor for the authorities’ economic program in times of exceptionally high uncertainty. Program performance remains strong, according to the IMF statement. All end-March quantitative performance criteria have been met. Understandings have also been reached on a set of policies and reforms to sustain macroeconomic stability.
In its statement, the IMF highlighted progress in Ukraine’s structural reform agenda. For the eighth review, two structural benchmarks have been completed, and a third is expected to be achieved in the coming weeks. The Ukrainian authorities have made a strong commitment to advance other key reforms.
Despite three years of full-scale war, Ukraine’s economy continues to show resilience. The IMF projects economic growth of 2–3% in 2025, with the inflation forecast remaining unchanged. Risks to the outlook remain exceptionally high, given uncertainty about the duration of the war and prospects for peace and recovery.
The exchange rate should play a greater role as a shock absorber, as per the preconditions outlined in the relevant NBU Strategy; this will help prevent external imbalances and preserve adequate reserves. The judicious and staged approach to FX liberalization should continue, consistent with overall monetary and FX policy mix to maintain adequate reserves, and measures should continue to be closely monitored.
The financial sector remains stable, but elevated risks require sustained vigilance. Developing financial markets infrastructure will be indispensable to attracting private sector capital to support reconstruction and recovery. Achieving this will require coordinated and consistent reforms. Comprehensive consultation with financial market participants is essential to facilitate a prioritized reform agenda.
Financing Ukraine’s substantial 2025 fiscal deficit will require continued significant external support, including through the ERA Loans initiative. Receiving the full amount of planned disbursements will be critical to maintaining macroeconomic stability and ensuring adequate financing. At the same time, authorities must persist in their efforts to mobilize domestic revenues.
The IMF emphasized that restoring medium-term fiscal sustainability requires determined efforts to mobilize domestic revenues, tackle tax evasion and avoidance, and improve the investment climate.
“This was a very intense and constructive mission. I am grateful to the teams at the IMF, the Ministry of Finance, and the National Bank of Ukraine for their effective and results-driven cooperation, which continues to strengthen the country’s financial stability and support the implementation of EU integration reforms,” said Andriy Pyshnyy, Governor of the National Bank of Ukraine.
On 31 March 2023, the IMF Executive Board approved a four-year Extended Fund Facility arrangement for Ukraine. The program is part of a USD 151.4 billion package for Ukraine.
Disbursements under the program are conditional on review results. Since early 2025, Ukraine has successfully completed one review of the program, and the government has received a tranche of about USD 0.4 billion from the IMF. After this disbursement, the total amount of funds received under the program reached USD 10.1 billion