The new International Monetary Fund program for Ukraine, amounting to $8.1 billion, will be reviewed in the event of successful peace negotiations, IMF head Kristalina Georgieva announced following a meeting of the Executive Board, UNN reports.
The program will be promptly reviewed in the event of successful peace negotiations
According to her, the new IMF program for Ukraine "aims to preserve hard-won macroeconomic and financial stability, as well as to expand and deepen structural reforms as the war continues." "This will address Ukraine's balance of payments problem and restore medium-term external sustainability, provide good prospects for recovery and growth in the post-war period, and facilitate Ukraine's path to EU accession," the IMF head stated.
Under the program, she said, "the authorities commit to overcoming long-standing obstacles to growth, including by combating corruption, promoting the formalization of economic activity, addressing tax avoidance and evasion, reforming energy markets, and strengthening financial market infrastructure."
"The risks to the EFF agreement are exceptionally high. The success of the program will depend not only on continued support from the international community to reduce fiscal and external financial deficits and restore debt sustainability, but also on the unwavering determination of the authorities to implement ambitious structural reforms and their readiness to take additional measures if necessary," Georgieva emphasized.
As indicated by the IMF, the main goals of the new program for the authorities are "further strengthening economic and financial stability, restoring debt sustainability on a forward-looking basis in both baseline and pessimistic scenarios, and advancing reforms that will lay the groundwork for sustainable post-war recovery and support Ukraine's goal of EU accession."
"The new program will build on the achievements under the 2023 EFF, while addressing the challenges arising from the ongoing war," the statement said.
According to the IMF, the macroeconomic priorities of the program include:
- implementing a prudent fiscal policy, including a robust budget for 2026, with measures to stimulate revenue mobilization by ensuring a level playing field and reducing tax evasion and avoidance;
- anchoring price stability and protecting against external imbalances, including by increasing exchange rate flexibility;
- protecting financial sector stability.
As stated, "the authorities are also committed to implementing ambitious structural reforms to ensure sustainable post-war recovery and reconstruction and achieve the goal of EU accession." "These include strengthening fiscal institutions and tax administration, improving governance and anti-corruption efforts, developing financial and capital market infrastructure for post-war recovery with the support of increased private lending, and promoting the development of a market economy."
It is expected that "a financing gap of USD 136.5 billion over the 4-year program period will be covered by guaranteed donor support and debt write-offs." In 2026, "a deficit of USD 52 billion is expected to be filled by funds allocated under EU mechanisms, financing under the G7 ERA program, bilateral support, and the recently approved IMF-supported program."
"The group of Ukraine's creditors, which holds most of Ukraine's official bilateral debt, has committed to extending the current debt payment moratorium and completing a final debt settlement once the situation of exceptionally high uncertainty (EHU) is resolved," the statement said.
As noted by the Ministry of Finance of Ukraine, the new program is designed for 2026-2029 and takes into account the updated macroeconomic and security conditions in which the state finds itself.
"The previous program of cooperation with the IMF, approved in 2023, was based on a scenario of the end of the active phase of the full-scale war and the transition to large-scale recovery. The ongoing full-scale war necessitates the preservation of significant current and medium-term fiscal needs of Ukraine. This required adapting the parameters of cooperation to the new geopolitical and macro-financial realities," the Ministry of Finance stated.
"The new EFF program aims to strengthen the economy and financial system, while also facilitating the attraction of additional financial resources from donors. It is aimed at continuing the achievements of the 2023 program, while simultaneously focusing efforts on de-shadowing and mobilizing domestic budget revenues," said Minister of Finance of Ukraine Serhiy Marchenko.
As reported by the Ministry of Finance, prior to the IMF Executive Board meeting, Ukraine completed three prior actions for the launch of the new program:
- the State Budget for 2026 was approved in accordance with the parameters of the new program;
- a resolution of the Cabinet of Ministers was adopted to ensure equal conditions for VAT payers in competitive public procurement procedures;
- a draft of the new Labor Code was submitted to parliament, which provides, in particular, for a change in the definition of “employment” to reduce opportunities for hidden labor relations.