(MENAFN) The International Monetary Fund (IMF) has given the green light for the eighth review of its Extended Fund Facility (EFF) for Ukraine, releasing a $0.5 billion tranche aimed at bolstering the country's state budget, the National Bank of Ukraine confirmed on Tuesday.

This decision, ratified by the IMF Executive Board on June 30, brings the total disbursements under the EFF program to $10.6 billion, as Ukraine continues its battle against the economic upheaval caused by its ongoing conflict with Russia.

“The program’s performance remains strong,” the IMF stated, noting that Ukraine had successfully met all its quantitative targets as of March and had enacted key reforms. While the disbursement schedule for 2025 has been adjusted, the overall program size remains unchanged at $15.5 billion.

IMF First Deputy Managing Director Gita Gopinath acknowledged the devastating impact of the war but praised Ukraine’s capacity to maintain macroeconomic stability through prudent domestic policies and robust international support.

The IMF has kept Ukraine’s growth forecast for 2025 at 2–3%, but it also warned of persistent high risks. The institution urged tighter monetary policy if inflation expectations worsen, though it commended the National Bank of Ukraine for its current approach.

The IMF also emphasized the need for continued structural reforms, which include implementing a supplementary budget, tax reforms that align with EU standards, and advancing external debt restructuring, especially in terms of Ukraine’s Eurobond strategy.

The total external support expected under the program is estimated at $153 billion under the baseline scenario and $165 billion in a downside scenario. Of this, $50 billion will be sourced from G7-backed ERA loans backed by frozen Russian assets.

“We have been waiting for this positive news from Washington,” said Andriy Pyshny, Governor of Ukraine’s central bank. “Each successful review is not only about financing, but about trust, sustainability of reforms, and the effectiveness of our cooperation with the IMF,” he added.

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