IMF Approves $690 Million for Ukraine's Budget Gap

The International Monetary Fund's Executive Board has approved immediate access to approximately $690 million for Ukraine to help bridge its budget gap. The IMF acknowledged that Ukraine has maintained macroeconomic and financial stability despite the ongoing war, but noted a deterioration in the economic outlook due to intensified attacks on critical infrastructure and the war in the Middle East. Reform implementation has slowed, with several structural benchmarks delayed or unmet, though the IMF deemed conditions for the tranche release 'generally satisfactory.' The meeting followed an agreement with Kyiv on revising the reform schedule and establishing corrective measures. The prolonged war is straining Ukraine's economy, increasing the budget deficit, which is largely financed by foreign partners. IMF Managing Director Kristalina Georgieva stressed maintaining macroeconomic stability and urged prudent fiscal and monetary policies to ensure financial sector resilience.