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IMF starts second review of $15.6 billion Extended Fund Facility for Ukraine

The IMF executive board. (Photo courtesy of the IMF)

International Monetary Fund monitors started a second review on Monday of the institution's ongoing multi-billion dollar support program for Ukraine, possibly paving the way for the release of the next tranche of approximately $900 million in aid.

The IMF's discussions with Ukrainian officials over its $15.6 billion Extended Fund Facility (EFF), the lender's first loan to a country at war, will take place partly in Warsaw and partly remotely from Kyiv, the Ukrainian central bank said in a statement on Facebook.

"During the second review of the EFF program, the state of performance by Ukraine of its commitments under the Economic and Financial Policy Memorandum will be discussed," said the National Bank of Ukraine. "These include measures in the areas of fiscal, monetary and currency policy, ensuring financial stability, and structural reforms for medium- and long-term economic growth."

The EFF, approved by the IMF board in March, forms part of a $115 billion support package for Ukraine. The IMF completed a first review of the EFF in June, allowing the country to access the equivalent of $890 million for budget support.

The review, a precondition to continued support, comes as the war-torn country fears international support, particularly from the US, in its war with Russia is waning as its supporters for weary of the war and distracted by the outbreak of violence in the Middle East.

It also comes as the European Union is considering whether to start talks that could lead to Ukrainian membership. On Wednesday, the executive branch of the EU is scheduled to present a report assessing Ukraine's progress toward membership, and EU leaders are set to meet in mid-December to decide whether to formally begin membership talks with Ukraine.

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