IMF Approves New Funding for Ukraine
The IMF Board has approved a new phase of the funding program for Ukraine, committing to disburse $0.5 billion.
This was reported by the National Bank of Ukraine.
"On June 30, 2025, the Board of Directors of the International Monetary Fund approved the latest phase of the 'Extended Fund Facility' (EFF) program," the report states.
This allows for access to 0.37 billion SDR (approximately $0.5 billion), which will be directed towards budget support. Following this disbursement, the total funding under the program will reach $10.6 billion, according to the National Bank.
The program's performance indicators remain strong, with all quantitative targets met by the end of March. One prior action and two structural benchmarks have also been successfully completed. Four new structural benchmarks have been established, and the timelines for some have been adjusted to give the government additional time for key reforms.
"Considering updated balance of payments needs, the Ukrainian side requested the mission to modify the payment structure under the EFF program for 2025. However, the total size of the program remains unchanged at $15.5 billion," the regulator stated.
The Ukrainian economy remains resilient, with a growth forecast for 2025 maintained at 2-3%. However, risks to the forecast are extremely high and require a clear action plan in case of realization.
"The IMF highlighted that, given the still high level of inflation, the National Bank’s tight monetary policy remains justified, and the NBU must be ready for further tightening if inflation expectations worsen. Currency reserves remain at a satisfactory level due to significant external support. Increasing exchange rate flexibility will promote economic stability and preserve international reserves," the statement adds.
The financial sector remains stable but requires close supervision due to heightened risks. Enhancing capital market infrastructure is key to attracting private foreign capital for post-war recovery.
The Fund also noted that the ongoing war necessitates the adoption of an additional budget for 2025. Restoring fiscal stability and meeting priority expenditures demands decisive efforts to implement the National Revenue Strategy, modernize tax and customs services, combat tax evasion, and harmonize national legislation with EU standards.
These reforms, along with improving the management of public investments, medium-term budgeting, and fiscal risk management, are critical for stimulating growth and attracting investment.
"Ukrainian authorities continue to work towards finalizing their strategy for restructuring external debt on Eurobonds. Achieving agreement in line with program goals for debt sustainability is essential for reducing fiscal risks and creating space for critical expenditures and restoring debt sustainability," the NBU reports.
The program remains fully funded: $153 billion under the baseline scenario and $165 billion under a negative scenario over the four-year program period, including approximately $50 billion under the G7 ERA Loans mechanism. Timely, predictable external support – under terms consistent with debt sustainability – remains crucial 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. Disbursements under the program are made based on the results of quarterly reviews.
