Monitoring the Implementation of the IMF Program and EU Assistance №15

On 20 May, the IMF mission for the eighth review of the Extended Fund Facility (EFF) programme for Ukraine began. The review will assess Ukraine’s progress against the quantitative performance criteria and structural benchmarks as of the end of March 2025.

Ukraine has met all the benchmarks required for the successful completion of the eighth review of the programme.

For 2025 as a whole, the IMF programme provides for up to USD 2.3 billion following four reviews. The next review will take place in August.

Ukraine has still not reported on the fulfilment of the Ukraine Plan indicators for the first quarter of 2025. Unlike the successful and timely fulfilment of the indicators for the fourth quarter of 2024, four indicators (including three legislative ones) remain unmet. This puts EUR 1.96 billion of the expected EUR 4.48 billion tranche at risk.

The methodology for partial payments approved by the European Commission provides that the “price” of an unmet legislative step is the average “price” of an indicator multiplied by two. The slower pace of implementation raises the question of whether the Ukraine Plan should be updated – by reviewing and adjusting the indicators while maintaining the ambition of the reform agenda.

Successful cooperation with international partners is critically important for Ukraine. Financing for priority state budget expenditures depends on it, while domestic revenues are directed towards security and defence.

That is why the RRR4U Consortium continues to regularly monitor Ukraine’s fulfilment of the conditions of the IMF financing programme and implementation of the Ukraine Plan.

Fulfilling commitments under financial support programmes is not something donors need – they are primarily in Ukraine’s own interest, as they are necessary to achieve economic resilience, move towards economic growth and improve the well-being of Ukrainians. This also helps build trust among international partners and foreign businesses.

The IMF programme and the Ukraine Plan are not the only commitments Ukraine has undertaken towards its external partners. However, they remain important for coordinating and securing additional international support.

There are also reforms required to receive funding from the World Bank, as well as a broader reform agenda that Ukraine needs to implement in order to become an EU member.