IMF to provide Ukraine with $500 million after review

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(Reuters) -The International Monetary Fund said on Monday it has completed its eighth review of Ukraine’s $15.5 billion four-year support program, paving the way for a disbursement of an additional $500 million to the war-torn country.

That will bring total disbursements to $10.6 billion, the IMF said in a statement, following its board’s approval of the review of Ukraine’s Extended Fund Facility.

It warned of ongoing and “exceptionally high” risks to the country’s outlook.

“Russia’s war continues to take a devastating social and economic toll on Ukraine. Nevertheless, macroeconomic stability has been preserved through skillful policymaking as well as substantial external support,” First Deputy Managing Director Gita Gopinath said in a statement.

The IMF said Ukraine met all the performance criteria laid out in the review, and established four new benchmarks for steps to upgrade the country’s financial market infrastructure, implement international valuation standards; and work to align securitization and bonds with international standards.

The board agreed to give Ukrainian authorities more time to meet some other structural benchmarks, including the appointment of the head of the State Customs Service, the IMF said.

Ukrainian authorities also requested a rephasing of access to IMF financing to better align with Ukraine’s needs over the remainder of 2025, the IMF said, without providing details.

The IMF said it maintained its 2025 economic growth forecast of 2–3 percent for Ukraine, citing lower gas production and weaker agricultural exports. Kyiv would need a supplementary budget for 2025, given pressures from Russia’s war, it said.

The country’s debt chief Yuriy Butsa told Reuters earlier this month that the review would offer the next logical opportunity to restart broken-down talks over restructuring its GDP-linked warrants.

(Reporting by Gursimran Kaur in Bengaluru;; Editing by Chizu Nomiyama)