The International Monetary Fund has reached a staff-level agreement to disburse $880 million to Ukraine as part of its ongoing loan to the country, the fund said in a press release.
The disbursement follows the third review, held in Warsaw over the past week, of the IMF's four-year, $15.6 billion Extended Fund Facility Arrangement with Ukraine, which is part of a $122 billion international support package available to the country through early 2027.
Gavin Gray, leader of the latest IMF review, said Ukraine's "performance under the program has been strong despite the challenges of the war—the authorities met all but one of the quantitative performance criteria—a small miss on tax revenues owing to border blockades—and all four structural benchmarks due for the review."
Gray said "significant" external financing and "skillfully maintained" macroeconomic and financial stability helped the Ukrainian economy grow by about 5% or more last year.
However, the IMF warned that the war with Russia and increasing uncertainty surrounding international aid from major backers such as the UK and the European Union will slow growth this year to between 3 and 4%.
“The authorities remain committed to wide-ranging structural reforms in order to preserve macroeconomic stability, support development goals and pursue a path to EU accession," Gray said.
