IMF to provide Ukraine with $8.2 billion over four years

The International Monetary Fund (IMF) has reached a staff-level agreement with Ukraine to provide $8.2 billion over four years under a renewed Extended Fund Facility (EFF) programme.

The funding is intended to support Ukraine’s economic stability from 2026 to 2029 amid the ongoing war with Russia. The IMF said the programme includes fiscal and monetary policies aimed at maintaining macroeconomic stability, restoring debt sustainability, tackling corruption, and improving governance.

Under the current $15 billion IMF programme, Ukraine has already received $10.6 billion.

Kyiv requested additional support in September 2025 as the country faces a sharp decline in foreign aid while spending nearly all domestic revenues on military operations, with the 2026 draft budget allocating approximately $62.8 billion to defence.

The country still needs $61 billion to cover pensions, schools, hospitals, and other public services in 2026 and 2027.

The IMF highlighted the importance of prompt donor support to avoid liquidity strains, noting that the programme will be recalibrated based on progress toward a durable peace. Ukraine must also complete specific reforms to access the funding, including strengthening independent anti-corruption institutions, increasing competition in public procurement, broadening the tax base, and preventing tax fraud.

The extended funding requires approval from the IMF’s Executive Board and depends on Kyiv meeting prior reform conditions and securing assurances from international donors.

The announcement comes as the European Union prepares a legal framework for a reparations loan, leveraging frozen Russian central bank reserves, while Ukraine continues negotiations on U.S. President Donald Trump’s 28-point peace plan.

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