KYIV (Reuters) – Ukrainian officials began talks on Thursday with an International Monetary Fund team working on the country’s latest loan programme review, which could unlock about $917 million in new funds.
As the war with Russia enters a fourth year, Ukraine is heavily dependent on foreign financial aid to cover its social and humanitarian spending needs, with the bulk of Ukrainian state revenue going towards funding the defence effort.
It is the seventh regular review of Ukraine’s $15.6-billion Extended Fund Facility (EFF) programme, the IMF said in a statement, and economists have said meeting its reform targets could pose challenges for Ukraine.
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It includes goals to pass amendments to the country’s criminal code and approve legislation to set up an administrative court. Parliament has not considered the draft bills yet.
Prime Minister Denys Shmyhal said on the Telegram messaging app that the government expected to receive a total of $2.7 billion from the IMF over the course of this year.
“Cooperation with the fund is an important factor in our financial stability,” Shmyhal said. “Despite the full-scale war, we continue to transform (the economy) and implement the necessary reforms.”
Since Russia’s invasion in February 2022, the IMF has provided a total of $12.4 billion to Ukraine, Shmyhal added.
Finance ministry data showed that the country had received more than $118 billion in foreign financial aid from its allies since the start of the war.
(Reporting by Olena Harmash; Editing by Helen Popper)
