IMF board to deliberate on Ukraine’s Extended Fund Facility Program

The agenda for the upcoming board meeting includes critical discussions on requests to modify effectiveness criteria, and waiver requests for Ukraine’s failure to meet the effectiveness criterion. Additionally, consultations with Ukraine under Article IV of the IMF Charter are on the docket.

The Ukrainian side had signed an updated memorandum on economic and financial policies under the EFF program, Ukrainian national bank chief Andriy Pyshnyi announced on Dec. 6.

“If we successfully pass the second review, and the IMF approves the next tranche, it means our international partners have renewed their commitments until 2024,” he said.

The NBU head highlighted the significance of this decision, stating that “without [the signed memorandum], the program would not proceed. This implies that we have decent chances to receive the level of financing we anticipate.”

IMF Deputy Executive Director Vladyslav Rashkovan echoed Pyshnyi’s positive outlook, forecasting a favorable vote from the Fund’s board of directors on the matter.

“First, there will be money from the IMF,” he said.

“Then from the U.S. Then from the EU. And then there will be more money from our other partners.”

The IMF mission had earlier initiated technical discussions in Warsaw on Sept. 25 to prepare for the second review of the Extended Fund Facility program. A successful outcome would pave the way for Ukraine to receive the anticipated third tranche of the loan.

Ukraine received the first tranche of $2.7 billion from the IMF in April, followed by the second tranche of $890 million in June. NBU chief Pyshnyi emphasized Ukraine’s expectation of a positive decision from the IMF Board of Directors on the second review and the disbursement of the third tranche, slated for December.