IMF Approves $690 Million Tranche for Ukraine

Overview

• The IMF Executive Board authorized immediate access to about $690 million, a decision announced on Monday that brings total disbursements under the $8.1 billion program to roughly $2.2 billion.
• The Fund judged Ukraine's overall program performance as generally satisfactory while noting that all March quantitative targets were met but an end-June net international reserves target was missed.
• IMF officials said implementation of structural reforms has slowed, and staff and Ukrainian authorities agreed in June on a revised timetable, corrective measures and new political commitments to get the program back on track.
• The IMF warned that Ukraine's near-term economic outlook has worsened because of more frequent attacks on critical infrastructure inside Ukraine and spillover effects from the conflict in the Middle East.
• The funding provides immediate budget support and liquidity for public services and reconstruction needs, but the IMF stressed Kyiv must adopt prudent fiscal and monetary policies and strengthen banking-sector resilience to reduce further risks to households and businesses.