Ukraine Will Receive an Additional $690 Million from the IMF: What Conditions Must Be Met
21 July 08:30
The Executive Board of the International Monetary Fund has completed the first review of Ukraine’s new four-year Extended Fund Facility program. The decision allows for the immediate disbursement of 503 million Special Drawing Rights—approximately $690 million—to the country.
This was reported on the Fund’s website, according to "Komersant Ukrainian"
On July 20, the IMF Executive Board completed the first review of the 48-month Extended Fund Facility (EFF) program for Ukraine.
The successful completion of the review paved the way for the immediate disbursement of:
- 503 million SDRs;
- approximately $690 million in currency terms;
- total disbursements under the program following this tranche will reach approximately $2.2 billion.
The new EFF program, totaling approximately $8.1 billion, was approved in February 2026. It is designed to last four years and is intended to support Ukraine’s macrofinancial stability, the state budget, and the implementation of structural reforms during the war.
Ukraine has met the program’s key performance indicators
The IMF noted that Ukraine’s performance under the program was generally satisfactory.
The Ukrainian authorities met all quantitative performance criteria and indicative targets set as of the end of March 2026. This applied, in particular, to fiscal policy, public finances, and monetary indicators.
The Fund also emphasized that Ukraine managed to maintain macroeconomic and financial stability despite:
- the ongoing full-scale war;
- intensified Russian attacks on critical infrastructure;
- deteriorating external economic conditions;
- the consequences of instability in the Middle East;
- extremely high security and economic risks.
The IMF believes that this was facilitated by prudent economic policies, the Ukrainian government’s cooperation with the Fund, and large-scale international financial support.
The IMF noted delays in some reforms
At the same time, the Fund noted a slowdown in structural reforms. Some milestones were met late, and Ukraine failed to implement certain measures by the specified deadlines.
Even when a staff-level agreement was reached in June, the IMF reported that two first-quarter structural milestones were met late, and one was not met on time.
To keep the program on track, Ukraine and the IMF agreed on:
- new deadlines for implementing reforms;
- corrective measures;
- additional commitments by the Ukrainian authorities;
- an updated schedule for meeting the structural milestones.
The main reforms concern fiscal policy, tax administration, public governance, the fight against corruption, the energy sector, and the financial system.
What IMF requirements remain for Ukraine
The IMF expects the Ukrainian government to continue its prudent fiscal and monetary policies, maintain the stability of the banking system, and avoid decisions that could reduce budget revenues.
IMF Managing Director Kristalina Georgieva stated that maintaining macroeconomic stability remains a top priority for Ukraine.
The Fund urges Ukraine to:
- strengthen domestic revenue mobilization;
- administer taxes more effectively;
- safeguard the stability of the financial sector;
- continue anti-corruption and governance reforms;
- ensure control over government spending;
- create conditions for post-war recovery and private investment.
What Is Known About the “Parcel Law” and VAT for Sole Proprietors
Part of the structural commitments under the cooperation with the IMF concerns broadening the tax base.
In particular, the Fund supported the elimination of tax exemptions for international parcels and changes to the rules for registering as a VAT payer. IMF representatives explained these proposals as necessary to level the playing field for Ukrainian and foreign manufacturers, reduce opportunities for tax evasion, and increase budget revenues.
At the same time, Ukrainian authorities had previously stated that there were no plans to immediately introduce VAT for all individual entrepreneurs. The timelines for implementing certain tax changes were revised, which helped mitigate risks to the approval of a new tranche.
The IMF Concluded Article IV Consultations with Ukraine
Along with the review of the loan program, the Executive Board concluded its 2026 Article IV consultations with Ukraine.
The IMF regularly conducts such consultations with member countries to assess their economic policies, the state of their financial systems, and key risks.
In Ukraine’s case, the main topics were:
- maintaining economic stability during the war;
- financing critical government needs;
- supporting the banking system;
- postwar recovery;
- the transition to a competitive market economy;
- aligning economic policy with the requirements for accession to the European Union.
How much money will Ukraine receive from the IMF?
Following the completion of the first review, the key parameters of the program are as follows:
- total EFF program amount—approximately $8.1 billion;
- duration— 48 months;
- new tranche — approximately $690 million;
- total amount of disbursements already approved—approximately $2.2 billion;
- the remaining portion of the program will depend on further reviews and Ukraine’s compliance with the agreed conditions.
IMF funds help finance the state budget, support foreign exchange reserves, maintain the confidence of international partners, and attract additional assistance from other creditors.
Subsequent tranches will depend on how promptly the Ukrainian government meets the program’s quantitative targets and structural benchmarks.
