"While good progress has been made, the authorities need some more time to implement policies to ensure medium-term fiscal sustainability — including adoption of the 2017 budget consistent with program targets — safeguard financial stability and tackle corruption," the statement said. "Discussions on these policies will continue in the period ahead."
The IMF mission visited Ukraine from November 3-17 to review economic progress that will determine whether the IMF allocates the next tranche of up to $1.3 billion to Kiev before the end of the year.
The mission noted that the Ukrainian economy is showing signs of recovery and growth is expected to reach 1.5 percent in 2016. However, per capita GDP remains at the second lowest in Central and Eastern Europe.
In March 2015, the IMF approved a four-year program of financial aid to Ukraine, which stipulates a $17.5 billion loan to be paid out in installments over the next four years and originally open for review on a quarterly basis.
Ukraine heavily relies on foreign aid to support its economy and to pay debts amid the ongoing armed conflict with independence supporters in the country's southeast.