IMF Approves €604 Million Disbursement to Ukraine Following Satisfactory EFF Review
The IMF has released a €604 million tranche to Ukraine after a positive review of the Extended Fund Facility program’s compliance and fiscal targets.
The International Monetary Fund (IMF) has approved the disbursement of approximately €604 million (around $690 million) to Ukraine after successfully completing the first review of the country’s four-year Extended Fund Facility (EFF) program. This marks the second tranche released to Kyiv under the agreement, reinforcing financial support amid ongoing challenges.
Performance and Structural Reform Implementation
According to the IMF, Ukraine’s overall compliance with the EFF program has been satisfactory. The country met all quantitative performance criteria set for the end of March. However, the fund noted delays in implementing several key structural reforms, particularly in fiscal management, governance, anti-corruption efforts, energy sector restructuring, and financial sector improvements.
“Ukraine continues to demonstrate remarkable resilience in the face of the devastating war initiated by Russia. Sound policies anchored by the program and strong international support have helped preserve macroeconomic and financial stability under extremely challenging conditions,” said Kristalina Georgieva, IMF Managing Director.
The total disbursements under this program, including the initial tranche, are expected to reach approximately $2.2 billion (€1.9 billion). The IMF’s executive board also concluded consultations on policies to maintain macroeconomic stability throughout the ongoing conflict and to support Ukraine’s transition toward a dynamic market economy aligned with European Union accession goals.
Economic Outlook and Funding Context
Despite the positive review, the IMF flagged a worsened economic outlook due to escalating attacks on critical infrastructure and adverse spillovers from the conflict in the Middle East. The Fund forecasts Ukraine’s GDP growth to slow to between 1% and 1.6% in 2024, down from 1.8% projected for 2025, with a rebound to 3.5% growth anticipated by 2027.
This tranche follows the initial approval of an $8.1 billion (€6.8 billion), 48-month EFF arrangement with Ukraine, which included an immediate disbursement of about $1.5 billion (€1.3 billion) earlier this year. The IMF funding forms part of a broader international financial aid package for Ukraine amounting to approximately $136.5 billion (€115.6 billion).
The program’s principal objectives are to strengthen macroeconomic and financial stability, advance structural reforms—particularly in governance—and support sustainable post-war recovery and Ukraine’s EU integration process. Funds are earmarked to help cover a projected budget deficit totaling $136.5 billion over four years.
Supporting institutions such as the World Bank, European Union, United Nations, and the Ukrainian government estimate that Ukraine will require roughly $588 billion (€498 billion) over the next decade to finance reconstruction efforts following the extensive damage caused by the conflict.
