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The IMF has approved a $690 million tranche for Ukraine: the conditions

The IMF has approved a $690 million tranche for Ukraine: the conditions

21 July 2026, 08:45

The IMF has approved a $690 million tranche for Ukraine: the conditions — The size of the new tranche is 503 million Special Drawing Rights, which is equivalent to approximately 690 million dollars.

The Executive Board of the International Monetary Fund has completed the first review of the four-year Extended Fund Facility programme for Ukraine. The decision paves the way for the immediate release of approximately $690 million.

This is reported on the IMF’s official website.

How much money will Ukraine receive?

The size of the new tranche is 503 million Special Drawing Rights, equivalent to approximately 690 million dollars.

Once these funds have been received, the total amount disbursed to Ukraine under the current Extended Fund Facility programme will reach around 1.6 billion Special Drawing Rights, or 2.2 billion dollars.

The programme is designed to run for 48 months. The IMF funds are intended to support Ukraine’s macroeconomic and financial stability, the state budget and the implementation of structural reforms.

Prime Minister Serhiy Koretskyi had previously stated that, should the first review be successfully completed, Ukraine would be able to receive precisely $690 million.

How the IMF assessed the programme’s implementation

The Fund described Ukraine’s results as generally satisfactory. The country has met all the quantitative performance criteria and indicative targets set for the end of March 2026.

At the same time, Ukraine failed to meet the June target for net international reserves. The IMF partly attributed this to the consequences of the war in the Middle East.

The implementation of structural reforms has also slowed down. Some benchmarks were met late, and some of the planned changes were not completed by the specified deadlines.

The Ukrainian authorities have agreed to corrective measures and a revision of the timelines for key reforms. Kyiv has reaffirmed its commitments in the areas of fiscal policy, public administration, the fight against corruption, the energy sector and the financial sector.

What reforms does the IMF expect?

The Fund has identified reducing the shadow economy and increasing domestic budget revenues as key priorities. It proposes that particular attention be paid to combating tax evasion and the use of tax optimisation schemes.

Ukraine must also improve the investment climate, strengthen anti-corruption institutions and the rule of law, continue reforming state-owned enterprises and improve the management of public investment.

Energy security, the stability of the banking system, the independence of the National Bank and cautious currency liberalisation remain separate priorities.

IMF representatives warned Ukraine against backtracking on reforms and called for the timely fulfilment of agreed commitments.

The IMF has downgraded its assessment of the economic situation

The Fund noted that Ukraine had managed to maintain macroeconomic and financial stability despite the full-scale war. This was facilitated by prudent economic policies, international support and the implementation of the cooperation programme with the IMF.

However, the economic outlook has deteriorated due to intensified Russian attacks on critical infrastructure and the consequences of the war in the Middle East.

According to the IMF’s forecast, real growth in the Ukrainian economy in 2026 will range from 1 to 1.6 per cent. In 2027, the Fund expects growth to accelerate to 3.5 per cent.

Public debt could reach 111.8 per cent of gross domestic product by the end of 2026. Inflation is forecast to stand at 10.5 per cent by the end of the year.

What do Article IV consultations mean?

Alongside the review of the loan programme, the IMF Executive Board has concluded its Article IV consultations with Ukraine.

The Fund usually conducts such consultations with member countries every year. Experts analyse the state of the economy, public finances, and exchange rate and monetary policy, after which they prepare recommendations.

The 2026 consultations focused on maintaining economic stability during the war, preparing for reconstruction, and Ukraine’s transition to a competitive market economy compatible with future accession to the European Union.

The IMF emphasised that the current programme remains fully financed under both the baseline and adverse scenarios. It is supported by the European Union’s €90 billion Ukraine Support Loan, the G7’s ERA mechanism and bilateral assistance from international partners.

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