IMF Approves Four-Year Funding Program for Ukraine Worth $8.1 Billion
The Board of Directors of the International Monetary Fund approved a new Extended Fund Facility (EFF) program for Ukraine on February 26, with a total amount of $8.1 billion. The program is designed for four years and aims to support the stability of Ukraine’s public finances and promote further reforms.
This is reported by AgroReview
Program Goals and Economic Outlook
According to the IMF, the approval of this program will attract significant concessional financing from international donors and partners. This, in turn, will help Ukraine address its balance of payments issues, ensure medium-term external viability, and strengthen public debt sustainability. The program also includes the continuation of reforms that have already led to the stabilization of the macroeconomic and financial situation in previous years.
“The approval of the Extended Fund Facility (EFF) program is expected to mobilize substantial concessional financing from international donors and partners of Ukraine, which will help address Ukraine’s balance of payments problem, achieve medium-term external viability, and restore debt sustainability on a forward-looking basis,” the IMF stated in its announcement regarding this decision.
First Tranche and Further Reforms
Ukrainian Prime Minister Yulia Svyrydenko announced that Ukraine will soon receive the first tranche of approximately $1.5 billion. These funds will be directed towards financing the state budget deficit and supporting macro-financial stability. Overall, the IMF program is part of a broader financial framework designed to cover the projected budget deficit of Ukraine, estimated at $136.5 billion over four years.
Svyrydenko noted that the IMF’s decision opens access to financing from the European Union, G7 countries, international financial institutions, and also includes debt relief mechanisms that will help reduce the burden on public debt.
She also added that the IMF has simplified the agreements with Ukraine reached in November 2025, including revising previous structural benchmarks after consultations with the fund’s leadership. One of the key issues was the taxation of individual entrepreneurs (FOPs). Ukraine and the IMF agreed to raise the VAT implementation threshold for FOPs to 4 million hryvnias, which is the maximum applicable level in Europe for goods.
According to the Prime Minister, there are currently 257,000 FOPs in the country that exceed this threshold, so the changes will affect about two-thirds of entrepreneurs. It is being discussed when the new rules will come into effect — previously, January 1, 2027, was proposed, but the final date is still being determined.