IMF mission begins reviewing Ukraine’s credit program

Negotiations between Ukrainian officials and an International Monetary Fund team working on the country’s most recent loan program review, which may unleash roughly $917 million in additional funds, started Thursday.

With the majority of Ukrainian state income going toward financing the defense effort, Ukraine is mostly dependent on international financial aid to meet its social and humanitarian spending needs as the war with Russia approaches its fourth year.

According to a statement from the IMF, it is the eighth regular review of Ukraine’s $15.6 billion Extended Fund Facility (EFF) program. Economists have warned that Ukraine may face difficulties in reaching the program’s reform goals.

Its objectives include approving legislation to establish an administrative court and passing changes to the nation’s penal code. The draft bills have not yet been reviewed by parliament.

Using the Telegram messaging app, Prime Minister Denys Shmyhal stated that the administration anticipated receiving $2.7 billion from the IMF this year.

“Cooperation with the fund is an important factor in our financial stability,” Shmyhal told reporters. “Despite the full-scale war, we continue to transform (the economy) and implement the necessary reforms.”

Shmyhal said the IMF had given Ukraine $12.4 billion since Russia’s incursion in February 2022.

Since the conflict began, the nation has received almost $118 billion in foreign financial aid from its allies, according to figures from the finance ministry.