New Funding Opportunities for Ukraine: IMF Decision
The International Monetary Fund has approved a new tranche of funding for Ukraine amounting to $0.5 billion.
This was reported by the National Bank of Ukraine.
On June 30, 2025, the IMF Board of Directors approved the eighth review of the "Extended Fund Facility" (EFF), granting access to financing of 0.37 billion SDR (approximately $0.5 billion).
This funding will be allocated to support the state budget. Following the receipt of this tranche, the total financing under the program will reach $10.6 billion, according to the National Bank.
The program's performance indicators remain high, with all quantitative targets achieved by the end of March. One prior action and two structural benchmarks have been met, while four new structural benchmarks have been established, and timelines for some of them have been revised to allow the government more time to implement key reforms.
In light of updated balance of payments needs, the Ukrainian side requested a modification of the payment structure under the EFF program for 2025, while the overall program size remains unchanged at $15.5 billion.
Ukraine's economic forecasts for 2025 remain optimistic, with growth projected at 2–3%. However, risks remain high, necessitating a clear action plan.
The IMF emphasized that, given the still high level of inflation, the National Bank's tight monetary policy remains justified, and the NBU must be prepared for further tightening if inflation expectations deteriorate. Foreign exchange reserves remain at an adequate level due to substantial external support, and exchange rate flexibility will enhance economic stability.
The financial sector remains stable but requires close monitoring amid rising risks. Improving capital market infrastructure is key to attracting private foreign investment for post-war recovery.
The Fund also noted that the ongoing war necessitates the adoption of an additional budget for 2025, focusing on fiscal sustainability and the implementation of the National Revenue Strategy.
These reforms, along with enhancing public investment management, medium-term budgeting, and fiscal risk management, are critical for stimulating growth and attracting investments.
The Ukrainian authorities are continuing their efforts to finalize their external debt restructuring strategy. Achieving agreements aligned with debt sustainability objectives is vital for reducing fiscal risks and creating space for critical expenditures.
The program remains fully funded: $153 billion under the baseline scenario and $165 billion under the negative scenario, including the use of approximately $50 billion through the G7 ERA Loans mechanism. Timely and predictable external support is essential for the full financing of the program.
The IMF Board of Directors approved a four-year extended funding program for Ukraine on March 31, 2023, with tranches provided based on quarterly reviews.
