Ukraine receives critical $900 million support from IMF amid war

Written by Jeppe W

Dec.12 - 2023 12:12 PM CET

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Photo: Shutterstock.com
Photo: Shutterstock.com

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The International Monetary Fund (IMF) has approved a significant tranche of financial aid for Ukraine, amounting to approximately $900 million.

This development, announced on December 11, marks a critical step in supporting Ukraine's economy amidst the ongoing war.

Deputy Executive Director of the IMF, Vladislav Rashkovan, shared this news on his Facebook page, stating, "The Board of Directors today approved the second review of the Extended Fund Facility program, which makes it possible to transfer the third tranche of about $900 million to the Ukrainian government."

This aid is part of the IMF's Extended Fund Facility (EFF) program, a four-year initiative totaling $15.6 billion, aimed at assisting Ukraine in financing critical expenditures and maintaining macrofinancial stability.

The program's review and subsequent tranche approval indicate the IMF's continued support for Ukraine during these challenging times.

Ukrainian Prime Minister Denys Shmyhal emphasized the nation's achievements in implementing the program's requirements and reforms, even in the face of the full-scale war. "Ukraine has fulfilled all the 'beacons' set, including legislative initiatives to improve the Budget Code, strengthen tax policy, anti-corruption measures, etc.," he stated.

The approval was also confirmed in a video by the Managing Director of the International Monetary Fund, Kristalina Georgieva, in the presence of Ukrainian President Volodymyr Zelensky. Georgieva acknowledged the close cooperation with Ukraine's economic team, leading to the successful completion of the second program review.

The IMF's assistance comes at a crucial time as Ukraine continues to grapple with the economic fallout of the conflict. The next review of the program is expected to take place this spring, as Ukraine prepares to meet further benchmarks and requirements set by the IMF.

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