IMF mission arrives in Kyiv for first EFF review, Article IV consultation

The International Monetary Fund (IMF) mission for the first review of the four‑year Extended Fund Facility (EFF) worth $8.1 billion has arrived in Kyiv and begun work, IMF Resident Representative in Ukraine Priscilla Toffano said on Wednesday, Report informs via Interfax Ukraine.

"An IMF mission, led by Gavin Gray, starts meetings today with the Ukrainian authorities and other stakeholders in the context of the first review of the EFF program and the 2026 Article IV consultation," her statement read.

"Discussions will cover macroeconomic policies and key structural reforms," Toffano added.

As reported, under the new program, Ukraine undertook commitments to adopt legislation introducing VAT for simplified taxpayers and on imported parcels valued below EUR 150 by the end of March. Regarding the first measure, Ukrainian officials said in mid-April that an agreement had been reached with the Fund to postpone its implementation by one year, while the Verkhovna Rada rejected the parcels bill on May 26, the day before the mission's arrival.

In addition, the EFF program approved at the end of February this year currently includes a structural benchmark for adoption of draft law No. 15111‑d on automatic exchange of income information on digital platforms. A vote on the bill in second reading is expected this week.

The new $8.1 billion EFF for Ukraine, introduced due to the protracted war, replaced the previous four-year $15.6 billion program launched in March 2023, under which nine disbursements totaling $10.6 billion were received. The first disbursement of the new program, amounting to SDR 1.11 billion ($1.5 billion), was credited to Ukraine's state budget in early March this year. Three reviews are scheduled for this year – in early June, September, and December, and if successful, Ukraine will be able to receive two tranches of SDR 0.50 billion each (about $0.72 billion), as well as another SDR 0.70 billion (about $1.01 billion).

Overall, the new program envisages a total volume of external financing for Ukraine with participation of international partners of $136.5 billion under the baseline scenario and $146.3 billion under the adverse scenario.