Ukraine: Seventh Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, Rephasing of Access, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Alternate Executive Director for Ukraine

UKRAINE SEVENTHREVIEWUNDER THE EXTENDEDARRANGEMENT UNDER THE EXTENDED FUNDFACILITY, REQUESTS FOR MODIFICATION OF APERFORMANCE CRITERION,REPHASINGOF ACCESS,AND FINANCING ASSURANCES REVIEW—PRESSRELEASE;STAFF REPORT;AND STATEMENT BY THEALTERNATEEXECUTIVE DIRECTOR FORUKRAINE March 2025 In the context of theSeventhReview Under the Extended Arrangement Under theExtended Fund Facility, Requests for Modification of a Performance Criterion,Rephasingof Access,and Financing Assurances Review, the following documents have been releasedand are included in thispackage: •APress Releaseincluding a statement by the Chair of the Executive Board. •TheStaff Reportprepared by a staff team of the IMF for the Executive Board’sconsideration onMarch 28, 2025, following discussions that ended onFebruary 28, 2025,with the officials ofUkraineon economic developments andpolicies.Based on information available at the time of these discussions, the staffreport was completed onMarch 21, 2025. •ASupplementaryInformationupdating information on recent developments. •AStatement by theAlternateExecutive DirectorforUkraine. TheIMF’s transparency policy allows for the deletion of market-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports andother documents. Copies of this report are available to the public from International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.org Web:http://www.imf.org International Monetary FundWashington, D.C. IMF Executive Board Completes the Seventh Review of theExtended Arrangement under the Extended Fund Facility forUkraine FOR IMMEDIATE RELEASE •The IMF Board today completed the Seventh Review of the Extended Arrangement underthe Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$0.4billion (SDR 0.3 billion) to Ukraine, which will be channeled for budget support. •Ukraine’s economy remains resilient, and performance remains strong under the EFFdespite challenging conditions. The authorities met all end-December and continuousquantitative performance criteria, the prior action for this review, and the majority ofstructural benchmarks. •Sustained reform momentum, progress at domestic revenue mobilization, as well as full andtimely disbursement of external support during the program period are necessary tosafeguard macroeconomic stability, restore fiscal and debt sustainability, and improvegovernance. Washington, DC—March 28, 2025:The Executive Board of the International Monetary Fund(IMF) today completed the Seventh Review of the EFF, enabling the authorities to drawUS$0.4 billion (SDR 0.3 billion, which will be channeled by the authorities for budget support.This will bring the total disbursements under the IMF-supported program to US$10.1 billion. Ukraine’s 48-month EFF, with access of SDR 11.6 billion (equivalent to about US$15.5 billion,or 577 percent of quota), was approved on March 31, 2023, and forms part of an internationalsupport package totaling US$148.8 billion in the baseline. Ukraine’s IMF-supported programhelps anchor policies that sustain fiscal, external, and macro-financial stability at a time ofexceptionally high uncertainty. The EFF aims to support Ukraine’s economic recovery,enhance governance, and strengthen institutions with the aim of promoting long-term growthin the context of reconstruction and Ukraine’s path to EU accession. Ukraine’s performance under the program remains strong. All end-December and continuousquantitative performance criteria were met as well as the majority of structural benchmarks.The prior action on enacting an increase in tobacco excise taxes was also met while, thestructural benchmark on the enactment of the law establishing a High Administrative Courtwas implemented with a delay. New benchmarks, including measures to improve publicinvestment management, were established while the timelines of other benchmarks havebeen adjusted to accommodate capacity constraints. The authorities also requested arephasing of IMF disbursements to better align them with Ukraine’s updated balance ofpayments needs. The overall size of the program remains unchanged. Economic growth in 2024 remained resilient but slowed in the second half of the year. Theslowdown is expected to continue in 2025 due to an increasingly tight labor market, the impactof attacks on energy infrastructure, and continued uncertainty about the evolution of the war.The National Bank of Ukraine (NBU) has tightened monetary policy to respond to the rise in inflation, which remains mainly driven by food prices, while inflation expectations remain wellanchored. Reserves remain adequate, sustained by continued sizeable external support.Overall, the outlook remains subject to exceptionally high uncertainty. Following the Executive Board discussion on Ukraine, Ms. Kristalina Georgieva, ManagingDirector of the IMF, issued the