The Ukrainian authorities and the International Monetary Fund (IMF) have reached an agreement on a new two-year financing program worth approximately $8.2 billion, announced Gavin Gray, the fund's mission chief for Ukraine.
„The agreement covers a set of fiscal and monetary policy measures, the objectives of which include maintaining macroeconomic stability, restoring debt sustainability and external viability, fighting corruption, and improving governance. The program is expected to catalyze large-scale external support to address Ukraine’s fiscal deficits,” Gray said.
According to the IMF’s baseline forecast, Ukraine’s overall fiscal deficit for 2026-2029 is estimated at approximately $136.5 billion. In 2026-2027, given existing commitments, Kyiv will face a residual fiscal deficit of approximately $63 billion, according to the organization’s estimates.
A condition for receiving the financing is that Ukraine adopts a 2026 budget that is consistent with the program’s framework. Kyiv must take measures to avoid inefficient spending and unjustified tax breaks.
Ukraine also committed to implementing a debt restructuring strategy and stepping up efforts to combat tax evasion. These measures include broadening the tax base, including taxation of income from digital platforms, eliminating customs loopholes and unnecessary VAT exemptions. Kiev has also pledged to combat the shadow economy and increase competition in public procurement.
In addition, the program includes reforms of the tax and customs services, the appointment of a new customs chief, and the implementation of IT infrastructure to improve efficiency.
The National Bank of Ukraine will also have to continue its efforts to reduce inflation to 5% within three years, “while ensuring greater exchange rate flexibility to adapt to fundamental factors“.
Bloomberg previously reported that the IMF is demanding that Kiev devalue the hryvnia to improve the country's financial situation by increasing budget revenues denominated in local currency.
The previous IMF financing program, worth $15.6 billion, was agreed in 2023.