On November 9, an International Monetary Fund mission began negotiations with the Ukrainian authorities as part of the combined second and third reviews of the four-year Extended Fund Facility (EFF) program, with a total volume of $8.1 billion. If the review is successfully completed and its results are approved by the IMF Executive Board, Ukraine may receive approximately $1.67 billion.
The main topics of the consultations include public finances, economic policy, structural reforms, and ensuring next year’s budgetary needs. Why are they important for official Kyiv, and how are they linked to the state budget? UNN explains.
What is known about the start of the IMF mission in Ukraine
The start of the mission’s work was announced by IMF Resident Representative in Ukraine Priscila Tofano. According to her, the delegation is headed by Gavin Gray, and the consultations cover two reviews of the current program at once.
"The IMF mission, headed by Gavin Gray, is beginning discussions today with representatives of the Ukrainian authorities in the context of the combined second and third reviews of the Extended Fund Facility (EFF) program," Tofano said.
She clarified that the negotiations would focus on the authorities’ macroeconomic and fiscal policy objectives and key structural reforms. The mission will work in a hybrid format: in-person meetings are taking place in Lviv and Warsaw, while some NBU specialists are participating remotely.
The Fund’s representatives will simultaneously assess the implementation of agreements over several test periods. Following the consultations, the parties are to agree on the conclusions at the staff level, while the final decision on financing will be made by the IMF Executive Board.
How much funding Ukraine has already received from the IMF
The IMF approved the current four-year EFF program on February 26, 2026. Its total volume is approximately $8.1 billion, and it is scheduled to run from 2026 to 2029.
The first tranche under the new program—approximately $1.5 billion—was credited to Ukraine’s state budget at the beginning of March. On July 20, the Fund’s Executive Board completed the first EFF review, after which Ukraine received another approximately $690 million on July 23. Thus, the total amount of funds actually received under the new program reached approximately $2.2 billion.
IMF financing is transferred to the national treasury in installments. Each subsequent stage is linked to an assessment of economic indicators and the fulfillment of agreed commitments.
What the IMF will review in Ukraine
In July, the Fund assessed Ukraine’s implementation of the program as generally satisfactory. According to the IMF, all quantitative criteria and indicative targets for the end of March had been met. However, some structural reforms progressed more slowly than expected, and some structural benchmarks were implemented with delays. In addition, the target for net international reserves set for the end of June was not achieved.
Among the areas identified as priorities in the Fund’s documents are currently:
- strengthening tax administration;
- combating tax evasion;
- improving the rules for the simplified taxation system;
- changes in public administration and the energy sector.
In particular, it provides for measures concerning the taxation of income from digital platforms, a review of tax exemptions for international postal shipments, and preventing the artificial splitting of businesses to use the simplified system. Changes in VAT administration, the independence of the energy regulator, and improvements to mechanisms for verifying declarations were also discussed separately. The deadlines for the various measures differ: some fall at the end of 2026, while others are scheduled for 2027.
Why the 2027 budget is important
On the eve of the mission’s start, on November 6, the government reported a conversation between Prime Minister Serhii Koretskyi and IMF Director of the European Department Mateusz Szczurek and representatives of the Fund. The parties discussed fiscal policy, the financial sector, the unshadowing of the economy, the 2027 budget, and opportunities to attract external financing in 2027–2028.
The draft state budget for 2027 has already received the Verkhovna Rada’s approval in the first reading. The government said it intends to finalize the document after consultations with the IMF in order to align the key indicators and sources for covering expenditures.
According to an estimate by the Ministry of Finance published at the end of September, Ukraine will need $52.6 billion in external financing in 2027. Sources of funding had already been identified or were expected for approximately $20 billion, while another $32.6 billion still required confirmation. Therefore, the talks with the IMF are important not only for the next tranche but also for developing a predictable financial plan for the coming year.
The Fund itself emphasized that completion of the review depends, among other things, on the availability of sufficient and convincing financing assurances. This refers to confirmation that Ukraine will have the resources to cover its projected needs on terms compatible with debt sustainability.
When to expect a decision on $1.67 billion
Back in early October, IMF representatives said they intended to submit the combined second and third reviews of the EFF to the Executive Board for consideration by December 2026. The Ministry of Finance also expected the next review to make it possible to attract approximately $1.66 billion in budget support by the end of the year. The $1.67 billion amount currently reported by the government is indicative and depends on the Fund’s final decision.
After the mission’s work is completed, the program’s conditions, economic risks, and budget financing opportunities will be assessed. If the parties reach an agreement, it will still have to be approved by the IMF’s Executive Board. Only after that will Ukraine be able to count on the actual disbursement of the next funds.
Thus, the talks that began on November 9 will determine not only the prospects for the next tranche but also the further parameters of Ukraine’s financial cooperation with the IMF amid the significant need for international support in 2027.
We remind you
As reported by UNN, the IMF mission is beginning work on the second and third reviews of the EFF program.