The International Monetary Fund (IMF) has authorized the disbursement of another $900 million tranche of funding for Ukraine, the organization announced on Dec. 11.
The tranche falls under the Extended Fund Facility (EFF), a four-year funding agreement that will allow Ukraine to access $15.6 billion in financial aid in regular installments. The IMF Executive Board released the funds following approval of the second review of the agreement, which was approved on the staff level in November 2023.
"As the war prolongs, it continues to strain Ukraine’s public finances," Kristalina Georgieva, Managing Director of the IMF, said in a statement following the Executive Board's discussion.
"Timely external disbursements as well as continued effort on the domestic market are key to meeting Ukraine’s financing needs and preserving macroeconomic and financial stability."
Georgieva met with President Volodymyr Zelensky at IMF Headquarters in Washington, D.C. after the Board approved the second EFF review. Zelensky arrived in Washington Dec. 11, ahead of a Dec. 12 meeting with President Joe Biden.
Georgieva praised Zelensky and other Ukrainian policymakers for sound economic governance in wartime.
"With the much-needed support from the international community, Ukraine has been able to implement and sustain strong economic policies," she said.
"The authorities also continue to demonstrate Ukraine's commitment to tackling vital governance and corruption issues."
The EFF funds are meant to lend Ukraine stability amid the disruptions of war, support the country's postwar recovery, and promote economic growth as Ukraine moves forward on the path to EU membership. According to the Board's review, Ukraine's economy has proved resilient despite the destabilizing effects of prolonged war.
In her statement, Georgieva identified a number of fiscal priorities for Ukraine, including public investment management, avoiding measures that decrease the tax base, and bolstering frameworks for medium-term budget preparation.
The Board's decision on Dec. 11 allows authorities to immediately access $900 million in funding to support the state budget.
Dominic Culverwell
