The measure, which requires approval from the Fund’s Executive Board, is part of the US$15.6 billion aid plan signed in 2023

The IMF (International Monetary Fund) announced on Thursday (22.Feb.2024) that it had reached a technical agreement with Ukraine that will allow the country to have access to around US$880 million (R$4.37 billion ). According to the financial entity, the terms must still be approved by the IMF Executive Board.

The disbursement is the 3rd installment of a US$15.6 billion (R$77.4 billion) aid plan signed in March 2023. When carrying out the 3rd assessment of the plan, the IMF said that the agreed program is, in generally, “on the right path”.

In a note (in full, in English – 125 kB), the IMF said that “Ukraine’s economy has recorded positive dynamics of strong growth, decreasing inflation and strengthening reserves in 2023, but the outlook for 2024 remains highly uncertain as the war continues”.

Discussions on the 3rd revision of the plan were held in Warsaw from 17 to 22 February. Ukraine’s Finance Minister, Serhiy Marchenk, and the governor of the country’s National Bank, Andriy Pyshnyy, were present. Gavin Gray led the negotiations on the IMF side.

The authorities [ucranianas] have skillfully maintained macroeconomic and financial stability, which, together with significant external financing, has enabled a stronger than expected economic recovery in 2023: growth is estimated at 5%, with upside risks, in a context of declining inflation and robust reserves“, he said.

However, the war and delays in external financing are weighing on confidence and growth in 2024 is expected to slow to between 3% and 4%”, he added.

Gray stated that fiscal financing needs “remain very high in 2024”, reflecting “pressures on war-related expenditure”.


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