IMF Approves New Funding for Ukraine
The International Monetary Fund (IMF) has approved a new funding tranche of $0.5 billion under its financing program, aimed at supporting Ukraine's economic stability.
This was reported by the National Bank of Ukraine.
The decision was made during the IMF Board of Directors meeting on June 30, 2025, where it was confirmed that the "Extended Fund Facility" (EFF) program continues to operate.
This tranche will provide immediate access to funding amounting to 0.37 billion SDRs (approximately $0.5 billion), which will be allocated to support the state budget. The total amount received under the program will reach $10.6 billion, according to the National Bank.
The program's performance indicators remain high, with all quantitative effectiveness criteria met by the end of March this year. Pre-conditions and structural benchmarks have also been achieved. Four new structural benchmarks have been established, and the deadlines for some of these have been modified to grant the government additional time to implement essential reforms.
In light of updated balance of payments needs, the Ukrainian side has requested the mission to alter the payment structure under the EFF program in 2025. However, the overall size of the program remains unchanged at $15.5 billion, as noted by the regulator.
The Ukrainian economy continues to show resilience, with a growth forecast for 2025 set at 2-3%. Nonetheless, risks remain exceptionally high and require clear plans of action in case they materialize.
The IMF highlighted that given the still high inflation level, the National Bank's tight monetary policy remains justified. The NBU must be prepared for further tightening if inflation expectations worsen. Foreign currency reserves remain adequate due to significant external support.
The financial sector remains stable, though it requires careful oversight amid heightened risks. Improving capital market infrastructure is key to attracting foreign private capital for post-war recovery.
The Fund's statement indicates that the ongoing war necessitates the adoption of an additional budget for 2025. Restoring fiscal sustainability and meeting priority expenditures demand decisive efforts in implementing the National Revenue Strategy, modernizing tax and customs services, combating tax evasion, and harmonizing national legislation with EU norms.
These reforms, along with improving public investment management, medium-term budgeting, and fiscal risk management, are critical for stimulating growth and attracting investment.
The Ukrainian authorities continue to work on completing their strategy for restructuring external debt related to Eurobonds. Achieving agreements according to the program's debt sustainability goals is vital for reducing fiscal risks, creating space for essential expenditures, and restoring debt sustainability.
The program remains fully financed, with $153 billion under the baseline scenario and $165 billion under negative conditions over the four-year program period, including approximately $50 billion through the G7 ERA Loans mechanism. Timely and predictable external support - on terms consistent with debt sustainability - remains crucial for the complete financing of the program.
The IMF Board of Directors approved a four-year extended funding program for Ukraine on March 31, 2023. Payments under the program are provided based on quarterly reviews.
