The Board of Directors of the IMF approved providing $1,1 billion to Ukraine

The Board of Directors of the IMF completed the sixth review of the Enhanced Financing Program (EFF) for Ukraine, deciding to allocate about 1,1 billion US dollars to Ukraine, which will be directed by the authorities to budget support. This is stated in the statement of the foundation radiosvoboda.org.

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Thus, the total volume of payments under the program supported by the IMF will reach 9,8 billion US dollars.

The IMF notes that the Ukrainian economy remains stable, and the performance indicators of the EFF program remain high, despite the difficult conditions. The authorities fulfilled all the quantitative performance criteria and structural benchmarks established at the end of September.

"The economic growth forecast for 2024 has been raised due to better-than-expected resilience to energy shocks. However, a slowdown is expected in 2025 due to an increasingly tight labor market, the impact of Russian attacks on Ukraine's energy infrastructure, and continued uncertainty about the war. Inflation has risen recently, mainly due to food prices, while inflation expectations remain well anchored. Adequate reserves are supported by significant external support that continues to flow in,” the fund notes.

Overall, according to the IMF, the outlook remains subject to extremely high uncertainty.

Managing Director of the International Monetary Fund, Kristalina Georgieva, notes that preparedness and contingency planning are key factors.

According to her, the tax package and the budget for 2025 have been adopted according to the program's baseline scenario, but there are few buffer reserves left, so strict implementation of the budget will be key.

"Continued progress in domestic revenue mobilization is critical for Ukraine to meet its priority spending needs and restore fiscal sustainability. "The implementation of the National Revenue Strategy and customs reform will help increase revenues, improve compliance with tax legislation, fight tax evasion, and facilitate accession to the EU," she added.

The four-year EFF program for Ukraine with access to financing in the amount of about 15,6 billion dollars was approved on March 31, 2023. This program is part of a support package for Ukraine in the amount of 148 billion US dollars.

In April of this year, the IMF said that the Ukrainian government needs $42 billion in budget support this year amid the ongoing Russian invasion.

Since the beginning of the full-scale war, the expenditures of the state budget of Ukraine have increased significantly. While the military campaign is financed from domestic resources, Ukraine relies on the support of international partners in financing social and humanitarian needs.

Read also on Newsky "The World Bank directs $454 million to Ukrainian health care" and look at "Boring Pence" YouTube channels.

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