The International Monetary Fund (IMF) has approved a new extended funding program for Ukraine, amounting to $8.1 billion over four years. This initiative aims to partially address the country’s budget deficit.
Ukrainian Prime Minister Yulia Svyrydenko announced that the first tranche, approximately $1.5 billion, is expected to be disbursed soon. These funds are intended to support budget financing and maintain macroeconomic stability.
“The program supported by the IMF is part of a broader financial framework designed to cover the projected state budget deficit of $136.5 billion over the next four years,” Svyrydenko stated.
Details regarding the preparation of this new IMF program emerged in November 2025, when Ukraine and the IMF agreed on the parameters of the four-year extended funding initiative. The program includes 16 structural benchmarks that the government and Parliament must implement, along with four mandatory prior actions that must be fulfilled for the program to commence.
In December 2025, the Ministry of Finance introduced a draft law for public discussion, proposing mandatory VAT payments for individual entrepreneurs with annual incomes exceeding 1 million UAH. Following negative feedback, the Ministry began working on a revised version, which would raise the threshold to either 2 million UAH or 4 million UAH per year, as reported by Bloomberg.
On February 14, Svyrydenko informed journalists that the IMF had agreed to waive the prior conditions for the new credit program. This includes requirements related to the introduction of VAT for individual entrepreneurs, customs duties on parcels, taxes for digital platforms, and the retention of military contributions.
The IMF has approved an $8.1 billion funding program for Ukraine, aimed at addressing the country's budget deficit over the next four years. The program includes specific benchmarks and conditions that the Ukrainian government must meet to ensure financial stability.