Ukraine is one step closer to an eight billion loan

The International Monetary Fund (IMF) announced that it has reached an expert-level agreement with Ukraine on a new four-year, $8.2 billion programme to replace the existing $15.6 billion arrangement agreed in 2023.

The programme is intended to help Kiev maintain macroeconomic stability and strengthen public finances at a time when the war with Russia is further straining the state budget.

According to IMF mission chief Gavin Gray, the new package is intended to "catalyze large-scale external support" to help cover Ukraine's estimated financial deficit of about $136.5 billion between 2026 and 2029.

The Ukrainian government stresses that the International Monetary Fund programme is key to raising additional resources, including a planned EU "reparation loan" to be backed by frozen Russian assets.

Prime Minister Yulia Svyrydenko said that the agreement confirms the resilience of the Ukrainian economy and that the draft state budget for 2026 is already set in line with the framework of the new programme. The programme still needs to be approved by the IMF Executive Board, once the agreed conditions have been met and sufficient pledges from donors have been secured.

(reuters, sie)