The International Monetary Fund late Tuesday said it has reached an agreement with Ukraine on an aid program review that could open the door to $1.1 billion for the war-battered country.

A staff-level agreement on the fifth review of the four-year Extended Fund Facility Agreement, subject to approval by the IMF executive board, would clear the way for Ukraine to access the money, according to the IMF.

It would raise to $8.7 billion the amount of funds dispersed so far to Ukraine as part of an IMF program tallying about $15.6 billion.

"Russia's war in Ukraine continues to have a devastating impact on the country and its people," IMF team leader Gavin Gray said in a release.

"Skillful policymaking, the adaptability of households and firms, and robust external financing has helped support macroeconomic and financial stability."

Real gross domestic product grew 6.5 percent in Ukraine in the first quarter of this year, while inflation in July was deemed low at 5.4 percent year-over-year, according to the IMF.

Gray noted that an economic slowdown is expected in Ukraine due to repeated attacks on its energy infrastructure and the effect of the war on labor markets and overall confidence, but growth should be about three percent for this year.

Inflation is expected to rise to about nine percent by the end of 2024, with risks to the financial outlook considered high, according to Gray.

Kyiv in July said it had struck a preliminary deal with international creditors to restructure government debt worth more than $20 billion, giving the war-torn country some financial breathing room.

Ukraine's economy has been decimated by Russia's invasion and the government is reliant on international aid to help it fund both its military and day-to-day government spending. 

The deal will see creditors -- including BlackRock, Pimco and other major institutional investors -- write billions off the nominal value of their holdings, and agree to a new payment schedule on terms more beneficial to Kyiv.

"The financial sector is stable and liquid, with reforms continuing apace despite challenges under Martial Law," Gray said.