KIEV, Aug. 5 – The Ukrainian government plans to use projected revenue outperformance for national security needs, the payment of pensions and social benefits in full, and the repayment of delayed VAT refunds, according to the International Monetary Fund's country report titled "Ukraine: First Review Under the Extended Arrangement," published after an IMF Executive Board meeting on Tuesday.

"The small projected revenue overperformance – after accounting for the higher interest costs stemming from the exchange rate depreciation and the monetary tightening – will be channeled to finance immediate priority needs and facilitate various structural reforms. These priority needs and reforms cover (i) national security needs; (ii) allocating sufficient funds for pensions and social assistance, including to support the internally displaced persons from the conflict in the east; (iii) clearing VAT refund arrears; and (iv) supporting ongoing judicial and civil service reforms," the report reads.