IMF Approves $690 Million Release to Ukraine, Delays Reforms English: IMF Approves $690 Million Release to Ukraine, Delays Reforms

Illustration. (Photo: Dok. Antara)

JAKARTA - The International Monetary Fund or IMF has approved the disbursement of around 690 million US dollars to Ukraine. The funds were released after the first review of the assistance program, although a number of reforms were late and the net foreign exchange reserve target in June was not achieved.

Anadolu Agency, quoted Tuesday, July 21, said the IMF Executive Board approved the first review of Ukraine's Extended Fund Facility or EFF program, which lasted for 48 months. The program supports Kyiv's efforts to maintain economic stability amid the war with Russia.

The disbursement is equivalent to 503 million Special Drawing Rights or SDR. SDR is an international reserve asset used by the IMF.

With the latest disbursement, the total funds that the IMF has provided to Ukraine through the program has reached around 1.6 billion SDR or around 2.2 billion US dollars.

The IMF Executive Board also completed the Article IV 2026 consultation with Ukraine. The consultation assessed the member country's economic policies, including measures to maintain stability during the war and the transition to a market-based economy in line with the goal of joining the European Union.

The IMF assessed the performance of the Ukrainian economy in the program to be generally satisfactory. All quantitative targets were achieved by the end of March.

However, the IMF still noted a number of problems. Some structural reforms were delayed. The net foreign exchange reserve target in June also missed, among other things due to the impact of the war in the Middle East.

"Ukraine continues to show extraordinary resilience in the midst of Russia's devastating war," said IMF Managing Director Kristalina Georgieva after the board meeting.

According to Georgieva, government policies supported by the IMF program and international support have helped maintain macroeconomic stability and the Ukrainian financial sector in a very difficult state.