Kyiv, Ukraine. The International Monetary Fund said on Friday it had completed the first review of Ukraine’s $8.1 billion loan programme, paving the way for the country to receive a second tranche of $690 million despite missing a key condition. The IMF board must still approve the agreement.
Programme review and conditions
Ukraine met all quantitative performance criteria and indicative targets for the loan by the end of March, according to an IMF statement. However, it implemented two structural benchmarks with a delay and missed one benchmark.
The IMF said its staff and the Ukrainian authorities agreed on a revised timeline for implementing reforms, corrective actions to address slippages and additional policy commitments to keep the programme on track. It did not provide details on the new timeline or the commitments.
Economic assessment
The IMF also completed a review of Ukraine’s overall economy and said the authorities had broadly maintained macroeconomic stability despite Russia’s war, now in its fifth year, as well as spillovers from the war in the Middle East.
It said the National Bank of Ukraine had maintained adequate international reserves, preserved financial stability and kept inflation expectations anchored despite shocks.
Growth outlook
The IMF said Ukraine’s GDP growth is projected to slow to between 1 per cent and 1.6 per cent this year due to the effects of the ongoing war and spillovers from the war in the Middle East, which it said began on February 28.