The IMF Board of Directors has approved a new four-year $15.6B extended financing program for Ukraine.

This program is part of the overall $115B package of Ukrainian support from its international partners. The first tranche of $2.7B is expected to arrive in a few weeks. After that, other tranches will be paid based on the results of quarterly program reviews. This year Ukraine will receive three tranches totaling $4.5B.

The Extended Fund Facility (EFF) program is a pillar of cooperation with international partners. It paves the way for large-scale funding from donors, including the G7 countries and the EU.

In a memorandum with the IMF, Ukrainian authorities undertook in 2023 to stop financing the budget deficit by printing the hryvnia and to reform the pension and social security systems. There are also mechanisms to harmonize Ukraine’s tax legislation with EU regulations.