Ukraine has received a tranche of nearly $1.1 billion from the International Monetary Fund (IMF) after the successful completion of the fifth programme revision, Prime Minister Denys Shmyhal said on Oct. 23.
"The funds will be used to cover important non-military budget spending," Shmyhal said.
Foreign aid is crucial for Ukraine as the economic pressure caused by the full-scale Russian invasion mounts. The besieged country received $42.5 billion in external financing last year, allowing it to function amid the ongoing war.
The IMF has reached a preliminary agreement with Ukraine to provide Kyiv with another tranche in September.
At the same time, the IMF said that the risks to Ukraine "remain exceptionally high" with the expected economic slowdown due to repeated Russian attacks on the country's energy infrastructure and the impact of the war on labor markets and confidence.
The IMF said Kyiv needs to "respect financing constraints and debt sustainability objectives" in the 2025 budget.
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.
The EFF is a long-term funding agreement that will allow Ukraine to access $15.6 billion in financial aid in regular installments.
Yaroslav Zhelezniak
