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.
Iran suggested it would be "unreasonable" to proceed with talks to forge a permanent peace d...
U.S. President Donald Trump vented his frustration with NATO during a private meeting with its secretary-genera...
U.S. President Donald Trump said on Wednesday its military ships and aircraft will remain a...
Walt Disney is planning to cut up to 1,000 jobs in the coming weeks, with many of the reductions expected to af...
Israel pounded Lebanon with its heaviest strikes yet on Wednesday, killing hundreds of people and drawing a thr...
Iran suggested it would be "unreasonable" to proceed with talks to forge a permanent peace deal with the U.S. after Israel pounded Lebanon with its heaviest strikes yet on Wednesday, killing hundreds of people. The warning came from Iran's lead negotiator, parliament speaker Mohammed Bager Qalibaf.
U.S. President Donald Trump vented his frustration with NATO during a private meeting with its secretary-general, Mark Rutte, on Wednesday as relations in the military alliance reached a crisis point over the Iran war.
U.S. President Donald Trump said on Wednesday its military ships and aircraft will remain around Iran and threatened that the U.S. will start "shooting" again unless Tehran fully complies with the deal reached with Washington.
Walt Disney is planning to cut up to 1,000 jobs in the coming weeks, with many of the reductions expected to affect its marketing division, The Wall Street Journal reported on Wednesday, citing sources familiar with the plans.
China and Russia vetoed a United Nations Security Council resolution on Tuesday aimed at coordinating defensive efforts to protect commercial shipping in the Strait of Hormuz, leaving no agreed international framework for securing the vital route.
Lebanon’s Hezbollah said it had stopped firing on northern Israel and Israeli forces on Wednesday as part of a two-week ceasefire in the Middle East brokered between the United States and Iran. However, a Hezbollah lawmaker warned that the pause could collapse if Tel Aviv does not adhere to it.
Pakistan’s Prime Minister Shehbaz Sharif said Iran and the United States, along with their allies, have agreed to an immediate two-week ceasefire covering all areas, but Israel says the deal excludes Lebanon. Tel Aviv says the U.S. is committed to achieving shared goals in upcoming negotiations.
Recent U.S. complaints about NATO allies and threats to quit the alliance are pushing European countries to seek alternative security arrangements, Spanish Foreign Minister Jose Manuel Albares said on Tuesday.
South Korea has welcomed a rare conciliatory response from North Korea, calling it a “meaningful step” towards easing military tensions on the Korean peninsula.
Greece will ban access to social media for children under 15 from 1 January 2027, Prime Minister Kyriakos Mitsotakis said on Wednesday, citing rising anxiety, sleep problems and the addictive design of online platforms.
Trade discussions between China and the U.S. are expected to remain virtual for now, with no major investment initiatives planned before a potential meeting between Xi Jinping and Donald Trump, according to U.S. Trade Representative Jamieson Greer.
The Russian T-90M tank is worth an estimated $4.5 million and was designed to dominate the battlefield. Yet this steel giant has repeatedly been destroyed by something far smaller, faster and thousands of times cheaper: the drone.
North Korea fired multiple ballistic missiles towards its east coast on Wednesday (8 April), South Korea’s military said, in a fresh show of force that underscored rising tensions despite brief signs of a possible thaw between the two sides.
The leader of Taiwan's largest opposition party used her first full day in mainland China to publicly pledge reconciliation, invoking the spirit of her party's founder, Sun Yat-sen, to call for unity whilst surprisingly praising the communist mainland’s developmental achievements.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment