New IMF financing programme: what is Ukraine required to do?

This was reported on the International Monetary Fund website.

The new agreement is for four years and is part of a package of international support for Ukraine. Its total volume is $136.5 billion. The EFF programme is intended to consolidate macroeconomic and financial stability, as well as stimulate structural reforms for post-war recovery and Ukraine's accession to the European Union.

According to IMF forecasts, Ukraine's public debt and state-guaranteed debt will amount to 107.6% of GDP in 2026 and 102.6% of GDP in 2027.

Reasons for launching the new programme and key requirements 

The main objective of the new programme is to maintain economic stability and restore debt sustainability under both baseline and adverse scenarios. The approval of IMF financing is expected to signal to other international donors to provide large-scale concessional assistance.

According to the IMF's official statement, the programme is based on several strategic areas, each of which contains specific requirements for the Ukrainian side:

1. Balanced fiscal policy and budget for 2026 

Ukraine is committed to implementing responsible fiscal and budgetary policies. The primary task is to implement a balanced budget for 2026. This should become the foundation for stabilising public finances in the context of a protracted war.

2. Mobilisation of domestic revenues 

One of the main requirements is to strengthen the state's ability to collect taxes. This involves creating a level playing field for all market participants, combating tax evasion and minimising opportunities for tax abuse. Particular emphasis is placed on reforming the tax service and strengthening fiscal institutions.

3. Price stability and monetary policy 

The programme includes measures to ensure price stability and protect against external imbalances. In particular, it involves gradually increasing the flexibility of the exchange rate.

4. Financial sector stability 

The IMF requires further protection of the financial system and development of financial and capital market infrastructure. This is necessary so that, after the war ends, the banking system can effectively lend to the private sector and support reconstruction processes.

5. Fighting corruption and public administration 

An important condition is the strengthening of anti-corruption institutions and the reform of energy markets. Such steps should remove barriers to economic growth and promote the formalisation of economic activity.

6. Preparation for EU accession 

All structural changes must be consistent with Ukraine's integration into the European Union. This applies to both legislative changes and the creation of market-based mechanisms for economic management.

Financing and support from partners

The total financing gap for the four-year period is estimated at $136.5 billion. In 2026, the $52 billion gap is planned to be closed with EU funds, G7 mechanisms (in particular ERA), bilateral support and IMF disbursements.

Ukraine's group of creditors, which includes most official bilateral creditors, has confirmed the continuation of the suspension of debt payments. 

In addition, a group of IMF shareholders, including the United States, the United Kingdom, Germany, France, Japan, Canada and other EU countries, confirmed the Fund's priority status as a creditor and pledged to provide the financial support necessary to service Ukraine's obligations to the organisation.

Position of the IMF leadership

IMF Managing Director Kristalina Georgieva noted the resilience of the Ukrainian people and the effectiveness of the government's policies during more than four years of war. Georgieva also added that the programme could be quickly revised ("recalibrated") if peace talks are successfully concluded. At the same time, Kristalina Georgieva warned that the risks to the programme remain "exceptionally high" and that its success will depend on the Ukrainian government's determination to implement reforms and its willingness to take additional measures if necessary.

Earlier, the IMF decided to cancel the prior actions for Ukraine's new $8.1 billion loan programme. These include requirements to introduce VAT for sole proprietors, duties on international parcels, taxation of digital platforms, and the continuation of the military levy.