The IMF approved a new tranche of assistance to Ukraine

The Executive Board of the IMF approved a new tranche for Ukraine in the amount of almost 880 million dollars. Funds will arrive to support the budget in the coming days, the IMF said.

Taking into account this tranche, the IMF provided Ukraine with 5.4 billion of the 15.6 billion dollars provided for in the extended financing program approved in March 2023.

The Ukrainian government has fulfilled all but one of the program’s quantitative indicators, namely the tax revenues of the budget, the Fund said. The head of the Fund’s mission to Ukraine, Gavin Gray, emphasized that the indicator was underachieved by a small amount. Responding to journalists’ questions, Gray indicated that the Fund does not expect a tax increase in Ukraine this year to fulfill the revenues, but, over time, with the reduction of support from international donors, the Fund expects Ukraine to mobilize domestic revenues.

The Fund emphasizes that Ukraine has managed to maintain economic stability despite the war, but economic recovery may slow down somewhat due to war risks and delays in external funding.

“The Russian invasion of Ukraine continues to cause extraordinary social and economic costs. However, macroeconomic and financial stability has been preserved, which reflects the skillful governance of the Ukrainian authorities and significant external support,” said the Managing Director of the Fund Kristalina Georgieva.

Georgieva expects that the recovery of the Ukrainian economy “will slow down somewhat, due to the extreme uncertainty associated with the war and possible delays in external financing.” She pointed to the importance of foreign aid for “ensuring hard-won macroeconomic stability.”

So far, the US Congress has not approved a bill that includes additional aid to Ukraine. Answering VOA’s questions during a press briefing, Gray clarified that the Fund is not currently considering the possibility of accelerating the allocation of the next tranches due to the delay in external financing. He also indicated that the Fund maintains a policy of “neutrality” towards its members regarding the possible use of Russian assets to help Ukraine.