IMF Reaches Agreement for $1.1 Billion Aid to Ukraine

The International Monetary Fund (IMF) has reached a preliminary agreement to provide Ukraine with approximately $1.1 billion in financial assistance, pending approval from the IMF Executive Board in the coming weeks. This funding is part of a larger four-year Extended Fund Facility (EFF) arrangement worth $15.6 billion aimed at supporting Ukraine amidst the ongoing challenges of war and economic instability. Ukraine's program performance has been noted as strong, with authorities meeting all necessary criteria for the latest review. However, the IMF cautioned that risks remain exceptionally high due to the impact of Russian attacks on infrastructure and a projected budget deficit of $35 billion for 2025. The IMF stressed the need for increased tax revenues to ensure fiscal sustainability moving forward. Overall, the agreement reflects ongoing international support for Ukraine's economic reforms and stability efforts during these challenging times.