Ukraine and the International Monetary Fund (IMF) on the expert level discussed the sixth review of the Expanded Finance Program (EFF), which would allow the government budget to receive another 1.1 billion dollars. This home ownership is an important factor for the financial stability of the region and the support of the economy in the minds of the war.

As Prime Minister Denis Shmigal informed, the Ukrainian side gave a positive assessment to the IMF for the removal of structural beacons and economic objectives. The fund recognizes the resilience of the Ukrainian economy, regardless of the publicity associated with the war. Following Shmigal’s words, Vikonavchoa’s decision for the sake of the IMF will see the final tranche in the near future.

The International Monetary Fund predicts that Ukraine's GDP will grow by 4% in 2024. However, in 2025, the rate of economic renewal may decrease to 2.5–3.5% due to the collapse of energy infrastructure and labor shortages. The IMF also voices the importance of keeping inflation under control, and the pause in the monetary policy loosening cycle is assessed as justified.

The Fund recommends preserving the exchange rate for currencies to absorb shocks and stay ahead of market changes. It is also important to maintain a sufficient level of international reserves to protect the economy from external risks.

A significant signal for Ukraine in 2025 will be the budget deficit, which, according to estimates, will amount to close to 19% of GDP through high taxes on defense. To cover this deficit, the IMF advocates the need for large-scale foreign assistance. One of the key measures of this encouragement is the initiative of the G7 countries, which transfers up to 50 billion dollars to Ukraine through the Extraordinary Revenue Acceleration (ERA) Loans program for the recovery of income from frozen Russian assets iv.

Ukraine is also guilty of violating several key structural beacons within the framework of the sixth review of the EFF program. Among them is a review of pre-war fiscal policy, an assessment of financial risks for stability, an analysis of the heat supply system and the development of government power management policies. In the past, Ukraine has already withdrawn 1.1 billion dollars from the IMF, which will be used for critically important budgetary funds of a non-Ukrainian nature..

The IMF stresses that the risks for the Ukrainian budget are not high, and ensures that the authorities are ready to make additional moves, such as raising the MPV rate, to ensure fiscal stability. The close cooperation with the IMF is deprived of important brainpower to boost the economy and eradicate the legacy of war.

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