The IMF Board completed on Thursday the first review of the extended arrangement under the Extended Fund Facility (EFF) for Ukraine, allowing the authorities to draw the equivalent of about USD 890 million (SDR 663.9 million), which will be channeled for budget support. The EFF was approved by the IMF Board in March 2023, and forms part of a USD 115 billion total support package for Ukraine, according to a press release from the IMF.
The authorities have made strong progress toward their commitments under the EFF under challenging conditions, meeting all applicable quantitative performance criteria through end-April and structural benchmarks through end-June, and remain highly committed to the program.
Continued strong ownership and reform momentum are necessary to safeguard macroeconomic stability, enhance institutional reforms, and support reconstruction efforts, while facilitating Ukraine’s path to EU accession.
Despite the war, the Ukrainian economy has been showing more resilience than expected following a sharp contraction in 2022. GDP growth has been upgraded to 1-3 percent in 2023 as domestic demand recovers, inflation is decelerating, and FX reserves are strong amid a stable FX market. Overall, macroeconomic and financial stability have been maintained, thanks to prudent policymaking as well as continuous and timely external support
Source: Kuwait News Agency
