The International Monetary Fund (IMF) approved an $8.1 billion, four-year Extended Fund Facility programme for Ukraine on Thursday, aimed at preserving macroeconomic and financial stability as the war with Russia continues into its fifth year.
The Extended Fund Facility (EFF) programme provides an immediate $1.5 billion disbursement and forms part of a broader international support package estimated at about $136.5 billion to help Ukraine maintain economic stability and support recovery efforts.
The programme replaces a $15.5 billion facility approved in 2023 and is designed to sustain public services, strengthen economic management and support long-term reconstruction planning. International partners are expected to contribute to Ukraine’s recovery, including a €90 billion credit commitment from the European Union and additional assistance from Group of Seven and other bilateral donors.
IMF Managing Director Kristalina Georgieva said the programme aims to preserve macroeconomic stability while advancing structural reforms and supporting recovery. Ukrainian authorities have managed to show economic resilience despite military pressure by working to control inflation, improve tax collection and strengthen financial regulation, although growth projections remain uncertain because of the continuing war.
The IMF expects Ukraine’s economy to grow by between 1.8% and 2.5% in 2026, following growth of about 1.8% to 2.2% in 2025. Inflation is projected to decline to around 6.1% this year from 12.7% in 2025.
The four-year loan arrangement will be reviewed quarterly, with nine scheduled evaluations. IMF officials stressed that sustained international financial assistance and Ukraine’s commitment to structural reforms are essential for the programme’s success. Key reform priorities include improving governance, reducing corruption risks, strengthening tax compliance, reforming energy markets and modernising financial market infrastructure.
Results under the previous programme were described as uneven, with some benchmarks achieved but others missed, including targets related to public investment management and valuation standards. The programme may be adjusted if a durable peace agreement is reached.
Ukrainian Deputy Prime Minister Yulia Svyrydenko said the financial package is intended to help close the country’s budget deficit and allow the government to continue functioning during wartime, particularly as repeated attacks on energy facilities disrupt economic activity.
The programme is also expected to support long-term reconstruction and Ukraine’s ambition for closer economic integration with the European Union.
Ukraine is estimated to face a financing gap of about $52 billion in 2026, which is expected to be met through IMF disbursements, European financing and other external support. A joint assessment by the IMF, World Bank, United Nations and Ukrainian authorities suggested that rebuilding the country after the war could cost roughly $588 billion over the next decade.
Several creditor nations, including the United States, Germany, Canada, the United Kingdom and Japan, have confirmed the IMF’s preferred creditor status to help protect Ukraine’s repayment capacity. The Group of Creditors of Ukraine also agreed to extend a debt standstill and prepare for future restructuring once economic conditions stabilise.
The IMF cautioned that programme risks remain exceptionally high due to the ongoing war and Ukraine’s dependence on sustained external financing. Future economic performance will depend on battlefield developments, international funding flows and progress in domestic reform.
The funding announcement comes as the latest U.S.-brokered peace talks on the Russia–Ukraine war concluded in Geneva without a breakthrough, with Ukrainian President Volodymyr Zelenskyy saying there is “more readiness” for the next trilateral meeting, likely to be held in Abu Dhabi in early March, though the exact date has not been finalised.
Tensions in the region remained high on Tuesday (10 March), as the United States and Iran exchanged increasingly sharp warnings, including thr...
Iran and the U.S. exchanged threats on Tuesday, as U.S. Defense Secretary Pete Hegseth warned Tehran to expect the&nb...
Up to 30 tonnes of food will be delivered to Iran amidst ongoing hostilities with U.S. and Israel, following a phone converstation between the ...
The Strait of Hormuz has become a focal point of global concern as tensions rise following the conflict involving Iran, the United States and Israe...
Reports of so-called “acid clouds” moving from Iran towards Central Asia are not supported by scientif...
Tensions in the region remained high on Tuesday (10 March), as the United States and Iran exchanged increasingly sharp warnings, including threats over the strategic Strait of Hormuz, a critical artery for global oil supplies.
Iran and the U.S. exchanged threats on Tuesday, as U.S. Defense Secretary Pete Hegseth warned Tehran to expect the “most intense day" of attacks so far. Meanwhile, Iranian President Masoud Pezeshkian said “anyone who entertains the illusion of destroying Iran knows nothing of history."
The Strait of Hormuz has become a focal point of global concern as tensions rise following the conflict involving Iran, the United States and Israel. Tehran has threatened to block the strategic waterway, raising fears of disruption to global oil shipments and energy markets.
Reports of so-called “acid clouds” moving from Iran towards Central Asia are not supported by scientific data, national hydrometeorological services in Kazakhstan, Uzbekistan and Kyrgyzstan say, adding there is no threat to the region.
Tensions in the region remained high on Tuesday (10 March), as the United States and Iran exchanged increasingly sharp warnings, including threats over the strategic Strait of Hormuz, a critical artery for global oil supplies.
Global oil prices surpassed $119 a barrel on Monday (9 March, 2026), an almost four year high, as the Middle East conflict rumbled on.
China has urged Afghanistan and Pakistan to resolve their dispute through dialogue after Chinese envoy Yue Xiaoyong met Afghan Foreign Minister Amir Khan Muttaqi, as fighting between the two neighbours entered its eleventh day.
Entry and exit across the state border between Azerbaijan and Iran for all types of cargo vehicles, including those in transit, will resume on 9 March, according to a statement by the Cabinet of Ministers of Azerbaijan.
Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as supreme leader on Monday (9 March), signaling that hardliners remain firmly in charge, as the week-old U.S.-Israeli war with Iran pushed oil above $100 a barrel.
U.S. Ambassador to the United Nations, Mike Waltz, has addressed the U.N. Security Council, saying the world must consider how effective its engagement with the Taliban-run country is as millions face hunger.
British MPs have rejected a proposal to introduce an Australia-style ban on social media for under-16s, opting instead to give ministers flexible powers to impose restrictions on platforms.
Australia has granted humanitarian visas to five Iranian women footballers who sought asylum, fearing persecution after refusing to sing their national anthem at an Asia Cup match.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 10th of March, covering the latest developments you need to know.
U.S. President Donald Trump called his recent phone conversation with Russian President Vladimir Putin “very good.” The two leaders spoke on Monday about the situation in Iran and other international issues.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment