Ukraine and the International Monetary Fund have agreed on a new four-year Extended Fund Facility worth $8.1 billion. This was reported on the websites of the IMF, the Ministry of Finance and the National Bank of Ukraine.
The agreement has so far been reached at a technical level; it must be approved by the IMF Executive Board in the coming weeks after the adoption of the state budget and the receipt of financial guarantees from other donors to Ukraine.
"The program is expected to help mobilize large-scale external support to cover Ukraine's financing needs. Under the baseline scenario, the total financing gap for 2026–2029 is estimated at roughly $136.5 billion"
– said IMF mission chief Gavin Gray.
The new program will replace the current one of $15.6 billion, under which Ukraine completed eight successful reviews and received nine disbursements.
Ukraine's commitments
The IMF reported that, in addition to adopting the budget, Ukraine committed to avoid inefficient spending and the introduction of new tax concessions.
Authorities plan to broaden the tax base by taxing income from digital platforms, close customs loopholes for imports of consumer goods and abolish exemptions from VAT registration. To combat the shadow economy, measures include strengthening competition in public procurement and closing gaps in the Labor Code.
The National Bank committed to continue monetary policy aimed at reducing inflation to the 5% target over a three-year horizon and to ensure greater exchange rate flexibility.
Reforms and anti-corruption
The IMF emphasized the importance of preserving independent anti-corruption institutions with adequate funding and continuing the reform of tax and customs services, including appointing a new head of customs and implementing modern IT infrastructure.
It is also planned to continue implementing the debt restructuring strategy to restore debt sustainability. To strengthen state-owned enterprises, the authorities commit to reform their financial planning, reporting and audit, and to improve procedures for selecting management of state-owned enterprises and state-owned banks.
