Ukraine is preparing to review the IMF Extended Fund Facility and budget issues in the coming years
Kyiv • UNN
Ukraine is preparing to review the IMF Extended Fund Facility program and budgetary issues for 2024-2025. This year, the IMF is expected to provide $3.1 billion in budget support, the second largest amount of external financing for Ukraine.
In 2024, budget support from the IMF will reach $3.1 billion, making it the second largest external financing for Ukraine. During the meeting with Gavin Gray, the IMF's mission chief for Ukraine, a number of issues were discussed regarding the financing mechanism.
Writes UNN with a reference to the Ministry of Finance of Ukraine.
Details
During the meeting, representatives of the Ministry of Finance and the IMF discussed the revision of the Extended Fund Facility and reviewed the budget for 2024-25.
Minister of Finance of Ukraine Sergii Marchenko met with Gavin Gray, the head of the International Monetary Fund mission in Ukraine. The meeting was also attended by First Deputy Minister of Finance Denys Uliutin and Deputy Minister of Finance Olha Zykova. Among the topics discussed were preparations for the fifth review of the four-year Extended Fund Facility (EFF) program and budget financing in 2024 and 2025, the Ministry of Finance informs.
It is noted that the IMF is currently the second largest source of external budget support for Ukraine. It was also reported that the current priorities of cooperation with the IMF remain unchanged.
The priorities of cooperation with the IMF remain unchanged: fulfillment of the EFF program conditions and mobilization of funds for the urgent needs of the state budget. We are now in the process of preparing for the fifth review. This is a significant result, as Ukraine has reached this stage in its cooperation with the IMF for the first time. This year, the IMF is the second largest source of external budget support, amounting to USD 3.1 billion. In total, the state budget has already received USD 7.6 billion under the program.
The next IMF mission in preparation for the fifth review of the EFF program will begin in September.
Among the important things:
The parties agreed that further implementation of policies in the financial sector should focus on strengthening domestic capacity. Steps are being taken to increase domestic resources.
In the first half of 2024, tax and customs revenues increased by 55% compared to the same period in 2023. Domestic government bonds continue to be the second largest source of financing for the state budget. We have positive dynamics
At the same time, Marchenko noted that at this stage, external financing continues to be critically important for Ukraine.
This year we have received the necessary assurances from donors. We are also actively working to raise funds in 2025. In this context, the decision of the G7 countries on the proceeds from the frozen assets of the aggressor country is important," the Minister of Finance emphasized.
