Financial sector news

The International Monetary Fund mission, together with government representatives, began work today in Ukraine on launching a new extended financing program.

The IMF's permanent representative in Ukraine, Priscila Tofano, said in Kyiv that the IMF mission, led by Gavin Gray, began discussions today with Ukrainian authorities in the context of their request to launch a new Extended Fund Facility (EFF) program.

“Discussions will focus on the government's economic policy objectives, with an emphasis on fiscal and monetary policies to ensure stability in conditions of continued high uncertainty, as well as on structural measures aimed at strengthening governance, fighting corruption, and supporting economic growth,” Tofano said.

Ukraine plans to agree on a new four-year program, as funds under the current $15.6 billion Extended Fund Facility program, approved in March 2023, are almost exhausted. Prime Minister Yulia Svyrydenko sent a request for a new program to the IMF on September 9.
As NBU Governor Andriy Pyshnyy previously explained, the current program, which runs until 2027, focuses heavily on post-war reconstruction, but as the war continues, Ukraine needs a new agreement adapted to the realities of a “war budget.”

According to the initial text, Ukraine has undergone eight successful reviews and received nine tranches over the two years of the current program. The preliminary estimated size of the new IMF program is $8 billion.