Economy

Ukraine and the IMF agree on a new loan program: what conditions need to be met

Ukraine and the International Monetary Fund have reached a staff-level agreement to launch a new financing program. It is designed for four years and provides $8.2 billion in support. This was reported by the IMF press service, "Komersant Ukrainian" reports

The final decision on the program is yet to be made by the Fund’s Executive Board. This will happen after Ukraine fulfills the preconditions and receives guarantees of external financing from its partners.

What does the new IMF program envisage?

The agreement contains a set of fiscal and monetary measures to ensure

• macroeconomic stability
• restoration of debt sustainability
• strengthening the fight against corruption;
• improvement of the public administration system.

Importantly, the budget for 2026 has already been prepared in line with the new IMF requirements and now needs to be supported by the Parliament.

Financial cushion for Ukraine: the deficit reaches $136.5 billion

The new program is intended to become a key tool for attracting long-term foreign aid. According to IMF estimates, Ukraine’s financial gap in 2026-2029 is about $136.5 billion.

In 2026-2027, the deficit, which is not covered by the commitments already made by partners, will reach $63 billion. That is why quick decisions by international donors are critical, the foundation emphasizes.

Budget 2026 is one of the key requirements

The IMF emphasizes that the adoption of Ukraine’s budget for 2026 in accordance with the framework of the new program is an imperative.

Among the risks, the Fund highlights the possibility of inefficient spending and attempts to expand tax benefits. Therefore, the Ukrainian authorities are expected to

• mobilization of domestic revenues,
• avoiding unnecessary spending,
• abandonment of tax loopholes and exemptions,
• strict budget discipline.

Separately, the IMF emphasizes the need to quickly and extensively attract external financing on favorable terms in order not to worsen the debt burden.

What Ukraine needs to do: from taxes for digital platforms to updated customs

The Ukrainian government has made a number of commitments:

• fighting tax evasion and expanding the tax base;
• taxation of income received through digital platforms;
• closing customs loopholes, especially when importing goods for consumers;
• abolishing exemptions for VAT registration;
• increasing competition in public procurement;
• combating shadow employment and gaps in the labor code.

The IMF and Ukraine also agreed to reform the State Tax Service (STS) and the Customs Service (SCS). In particular, this includes:

• appointment of a new head of the customs service,
• launching a modern IT infrastructure,
• restoring trust in the work of the services.

In the public sector, Ukraine has committed to strengthening the rules of financial planning, reporting, and auditing for state-owned enterprises and state-owned banks.

NBU policy: moving towards 5% inflation and more exchange rate flexibility

The NBU will continue its policy of restraining inflation and bringing it down to the 5% target over a three-year horizon.

The NBU’s key tasks are as follows:

• to ensure macro stability,
• maintain sufficient reserves,
• gradually increase exchange rate flexibility, allowing it to better absorb external shocks.

Anti-corruption bloc and reform of state-owned enterprises

The Foundation emphasizes the importance of

• independence of anti-corruption institutions,
• their sufficient funding,
• continuation of corporate governance reforms in state-owned enterprises.

Ukraine should also implement a reform of appointments in state-owned banks and state-owned companies to make their work more transparent and manageable.

Position of the Ukrainian government

Following the week-long IMF mission to Kyiv led by Gavin Gray, Prime Minister Yulia Svyrydenko said that the Fund praised Ukraine’s ability to keep the economy going even during massive attacks on energy and transportation infrastructure.

The Ukrainian economy continues to operate and demonstrates the ability to manage risks in the extremely difficult conditions of war.

Budget 2026 has already been prepared to meet the requirements of the new program

One of the key conditions of the new program is that the budget for 2026 will be prepared in accordance with the IMF framework. The Government has taken into account the requirement to use funds as efficiently as possible and to spend every hryvnia rationally.

The Prime Minister hopes for the support of MPs when adopting the final draft state budget.

Ukraine continues to pursue reforms

Svyrydenko emphasized that the government’s priorities remain unchanged:

• macroeconomic stability
• debt sustainability
• transparency and effective governance
• strengthening the institutional capacity of the state.

Ukraine is committed to continue fighting the shadow economy, strengthening anti-corruption mechanisms and reforming state institutions.

The key areas include

• rebooting corporate governance in state-owned enterprises;
• increasing the transparency and efficiency of the public sector;
• continuation of the competition for the head of the State Customs Service and modernization of the customs system.

Thanking the IMF and waiting for the final decision

The Prime Minister expressed her gratitude to the IMF team for their longstanding support of Ukraine in the face of a full-scale war. She noted that the new program will be an important step to ensure the financial stability of the state in the coming years.

Ukraine now awaits final approval of the agreement by the IMF Executive Board.

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