The International Monetary Fund (IMF) has announced that its Board of Directors will soon consider a new loan agreement for Ukraine amounting to $8.1 billion. If approved, this agreement will replace the existing $15.5 billion credit facility.
The new program aims to bolster economic stability and support government expenditures amid the ongoing conflict, now entering its fifth year. Julie Kozak, an IMF spokesperson, indicated that Ukraine has met the preliminary conditions necessary to advance its request for the new program, which includes the submission of a labor code bill and the approval of the national budget.
According to Kozak, Ukraine’s economic growth is projected to be less than 2% in 2026, reflecting the challenges posed by the war, which has resulted in slower growth and increased budgetary demands.
“The Russian invasion continues to inflict serious damage on the Ukrainian people and the economy,” Kozak stated.
In a significant development, the IMF has agreed to waive certain prior actions that were originally required for the new loan program. These included the implementation of value-added tax (VAT) measures for individual entrepreneurs, customs duties on parcels, taxation for digital platforms, and the maintenance of a military levy.
Earlier reports in January indicated that the IMF Board could approve a new four-year Extended Fund Facility (EFF) program for Ukraine in February, contingent on Ukraine fulfilling agreed-upon prior actions.
The IMF is set to review a new $8.1 billion loan agreement for Ukraine, which aims to support economic stability amid ongoing conflict. The approval of this program would replace the current $15.5 billion facility, reflecting Ukraine's compliance with preliminary conditions.