New loan agreement for Ukraine: IMF decision may be made in the near future
20 February 09:41
The International Monetary Fund’s Board of Directors will consider a new agreement on an $8.1 billion loan program for Ukraine in the coming days.
This was reported by "Komersant Ukrainian" with reference to Reuters.
It is noted that if this program is approved, it will replace the current $15.5 billion loan agreement with the IMF.
The new program will be aimed at supporting economic stability and government spending in the fifth year of the war with Russia.
IMF spokeswoman Julie Kozack said that Ukraine had fulfilled the preconditions necessary to move forward with the request for a new program, including submitting a draft labor code and passing a budget.
According to her, Ukraine’s economic growth in 2025 is likely to be less than 2%. Due to the war, the country’s economy is growing more slowly and with higher budget expenditures.
“The Russian invasion continues to have a serious impact on the Ukrainian people and economy,” Kozak said.
The World Bank, the Ukrainian government, and the European Union are finalizing a new assessment of the cost of rebuilding the country, which is to be released next week. Experts predict a significant increase in this amount compared to last year’s estimate of $524 billion due to large-scale Russian attacks on energy infrastructure.
The IMF noted that the agreement assumes that the war will end this year, but also allows for a “negative scenario” in which the war will continue until 2028.
New IMF loan for Ukraine
In November 2025, Ukraine and the IMF reached a preliminary agreement to launch a new four-year financing program worth $8.1 billion.
At the same time, the receipt of funds is subject to a number of conditions. Ukraine has already fulfilled one of them – the Verkhovna Rada has approved the state budget for 2026.
Among other IMF requirements is the introduction of VAT for individual entrepreneurs with an annual income of over UAH 1 million.
However, this provision has been criticized. Experts warn that it could contribute to the growth of the shadow economy, and consider the established income threshold to be too low and in need of revision.
Against this backdrop, IMF Managing Director Kristalina Georgieva said during a visit to Kyiv in January this year that the Fund could give Ukraine up to a year to adopt the necessary changes to this tax.
At the same time, it was recently announced that the IMF had canceled the preconditions for Ukraine’s new $8.1 billion loan program, namely the requirements for VAT for sole proprietors, customs duties on parcels, tax on digital platforms, and military tax.
The Ukrainian government recently announced that the IMF may approve a new loan program for Ukraine within a few weeks.
