IMF reaches $2.2 billion loan deal with Ukraine

The International Monetary Fund (IMF) has announced an agreement on a $2.2 billion loan deal with Ukraine. This agreement comes as part of the fourth review of a 4-year Extended Fund Facility (EFF) arrangement with Ukraine. The EFF arrangement, sanctioned in March 2023, provides access to approximately $15.6 billion and is part of a $122 billion support package for Ukraine.

According to the IMF statement, all quantitative performance criteria were fulfilled, and structural benchmarks for the review were either met or executed with a brief delay. The agreement also includes an updated set of economic and financial policies aimed at maintaining macroeconomic stability and advancing economic reforms.

Despite achieving robust growth and continued disinflation through the first quarter of this year, Ukraine’s economy faces significant and escalating risks due to the ongoing war against Russia. The outlook for the rest of the year remains highly uncertain, the IMF noted.

The $2.2 billion loan is contingent upon approval by the IMF’s executive board.