Georgievová negotiates billion-dollar loan and reforms in Ukraine

The head of the International Monetary Fund (IMF), Kristalina Georgieva, arrived in Kyiv on Thursday morning for talks with Ukrainian President Volodymyr Zelensky, Prime Minister Yulia Svyrydenko, and Central Bank Governor Andriy Pyshnyy.

The purpose of the visit is to assess progress on reforms and discuss a new four-year loan program worth $8.2 billion.

Ukraine has so far drawn $10.6 billion from the IMF program out of the original $15.5 billion. The new program is intended to respond to the changed conditions in the country, where the war continues. Funding is conditional on budget approval, increased domestic revenues, the fight against tax evasion, and the acquisition of grant-oriented assistance from donors.

In 2026, Ukraine plans to allocate 27.2 percent of GDP to defense. The Fund points to the need to broaden the tax base and remove exemptions, for example on imports and digital revenues. It also emphasizes the independence of anti-corruption institutions and labor code reform.

A key step forward was the securing of a €90 billion loan from the European Union, payable only if Russia pays reparations. The IMF is considering several scenarios, ranging from the end of the war this year to its continuation until 2028. A decision on the new agreement is expected in the coming weeks.

(reuters, max)