Representatives from the International Monetary Fund (IMF) are set to visit Ukraine in the coming weeks to evaluate the nation’s progress in implementing economic reforms and expanding its tax base as part of an $8.1 billion loan agreement. This information was confirmed by IMF spokesperson Julie Kozak, according to Reuters.
Kozak emphasized the necessity for Ukraine to mobilize more domestic financing to address its “very, very significant” financial needs, in addition to the substantial external support the country has received from donors since the onset of Russia’s full-scale invasion in February 2022.
According to Kozak, the Ukrainian government must broaden its tax base and transition parts of its shadow economy into the legal sector. The IMF estimates that the shadow economy currently constitutes approximately 45% of the country’s GDP.
The spokesperson noted that Ukraine has committed to undertaking comprehensive reforms in line with the conditions of its latest IMF loan program. These reforms are also essential for Ukraine’s aspirations to join the European Union and to attract significant external donor support.
Discussions during the upcoming visit will include tax-related issues, such as the potential implementation of VAT on low-cost imports and taxes for individual entrepreneurs. However, Kozak did not provide details regarding the IMF’s willingness to relax any loan conditions.
The new IMF lending program, approved in February, is scheduled for review in June to assess whether Ukraine is meeting its targets.
On February 14, the IMF agreed to waive prior conditions for the new $8.1 billion loan program for Ukraine. These conditions included requirements for the introduction of VAT for individual entrepreneurs, tariffs on packages, taxes for digital platforms, and the maintenance of a military levy.
In December 2025, the Ministry of Finance proposed a draft law mandating VAT payments by individual entrepreneurs with annual revenues exceeding 1 million hryvnias. Following negative feedback, the Ministry began preparing a revised version that would raise the threshold to either 2 or 4 million hryvnias per year, as stated by David Arakhamia, head of the “Servant of the People” faction.
The IMF will assess Ukraine's economic reforms and tax expansion efforts as part of an $8.1 billion loan program. The visit highlights the importance of domestic financing and the need to address the shadow economy, which significantly impacts the nation's GDP.