Ukraine is poised to receive a $2.2 billion disbursement from the International Monetary Fund (IMF) after meeting the terms of its current loan program, as announced by the IMF following a five-day staff mission in the country. This disbursement, still awaiting the IMF executive board's approval, is part of a larger $122 billion international support package intended to stabilize Ukraine's economy during the ongoing Russian invasion.

This payout follows the successful completion of the fourth review of Ukraine's four-year IMF loan program, which is worth approximately $15.4 billion. Despite the war's challenges, IMF Ukraine mission chief Gavin Gray commended Ukraine for meeting all quantitative performance criteria and achieving one structural benchmark, with another implemented shortly after its deadline.

Ukraine's economy, severely impacted at the start of the Russian invasion in 2022, has shown signs of recovery. The IMF forecasts a 3.2 percent growth for Ukraine’s economy this year, alongside a decrease in inflation.

This IMF agreement follows a recent U.S. foreign aid package, which includes $61 billion to support Ukraine's military efforts against Russia. Gray noted that, despite earlier liquidity challenges due to delays in external financing, budget support for 2024 has resumed, ensuring economic stability.

Fiscal financing needs for Ukraine remain high, and the country is making progress on restructuring its commercial external debt, a key aspect of the IMF-backed reform program. These reforms are crucial to creating space for high-priority expenditures and to bringing debt back to sustainable levels.