IMF to consider allocating about $690 million to Ukraine under EFF program in coming weeks

The International Monetary Fund has confirmed that the Executive Board will consider the first review of the four-year Extended Fund Facility (EFF) for Ukraine in the coming weeks. If the decision is positive, our country will receive the second tranche of financial support in the amount of about 690 million US dollars.

This was reported by IMF spokeswoman Julia Kozak on July 9.

“We expect the Executive Board to meet to consider the first review in the coming weeks. We will provide more details on the exact date of the meeting when it is determined,” Kozak noted.

Earlier, Ukrainian Finance Minister Serhiy Marchenko reported that the IMF Board of Directors meeting is tentatively expected on July 20. According to him, Ukraine has already submitted all the necessary documents to the Fund for the review of the program.

Back on June 12, Ukraine and the IMF reached an agreement at the staff level (Staff-Level Agreement, SLA) on the first review of the EFF program. This paved the way for the second tranche of around 503 million Special Drawing Rights (SDR), equivalent to approximately 690 million USD.

One of the prerequisites for a positive decision was the adoption by the Verkhovna Rada of the law on taxation of income received through digital platforms. At the same time, the document is still awaiting the signature of the President of Ukraine.

Regarding other structural obligations stipulated in the cooperation program with the IMF, in particular, the introduction of taxation of international postal items worth up to 150 euros and the revision of the simplified taxation system, the parties agreed to postpone their implementation.

The EFF Extended Fund Facility is one of the key mechanisms of international financial support for Ukraine and provides for the phased allocation of funds subject to the implementation of agreed structural reforms.