On December 11, the International Monetary Fund's Board of Directors approved a second review of Ukraine's Extended Credit Program, paving the way for a third tranche of approximately $900 million.
This was announced by the deputy of one of the executive directors of the IMF, Vladislav Rashkovan. According to him, “we will now work on preparing for the third revision in the spring.”
In addition, Rashkovan said that the IMF headquarters, located in Washington, was visited on Monday by Ukrainian President Vladimir Zelensky, who is visiting the United States.
“The fund noted our achievements in implementing the program and reforms, despite a full-scale war. Ukraine has fulfilled all the “beacons” set, in particular legislative initiatives to improve the Budget Code, strengthening tax policy, anti-corruption measures, and the like. Thank you to the IMF and the Ukrainian team for their coordinated and consistent work to strengthen and develop Ukraine,” commented Prime Minister Denys Shmygal.
Let us recall that on March 31, the IMF Executive Board approved a four-year Extended Fund Facility for Ukraine in the amount of $15.6 billion.
It aims to help Ukraine meet urgent funding needs that have arisen due to the war. The first tranche of $2.7 billion was allocated in early April, and Ukraine received the second, worth $890 million, in July.
Tranches should be provided based on the results of program reviews, which relate to whether the Ukrainian side has fulfilled the so-called “structural beacons,” that is, obligations undertaken within the framework of cooperation with the IMF.
Among them, for example, was the adoption of laws on the resumption of scheduled tax audits and limiting rates on microloans. Let us note that the Ministry of Finance in October expected that the second revision of the program would take place in November.
