IMF begins talks that could unlock $1.67 billion tranche for Ukraine
on Google
A mission from the International Monetary Fund (IMF) has begun talks with Ukrainian officials to review two stages of its $8.1 billion lending program, which, if approved, could unlock a much-needed tranche of around $1.67 billion in financing for Kyiv.
The talks come as Ukraine faces a major shortfall in the international funding needed to finance its state budget next year. Ukraine requires $52.6 billion in external financing in 2027, and about $32.6 billion of that amount remains uncovered, Prime Minister Sergii Koretskyi said in October.
Ukraine directs most of its domestic resources toward security and defense, while relying on international support to help cover social spending, including pensions, health care and other public services.
The mission began on Nov. 9, and will work in a hybrid format, with Ukrainian and IMF representatives meeting in Lviv and Warsaw. National Bank of Ukraine experts will also join some meetings online, the bank said.
The discussions will cover Ukraine’s economic and budget policies, financial sector stability and progress on reforms required under the program. The teams will also discuss the 2027 budget and how Ukraine plans to secure enough international funding for the coming years.
Bloomberg reported in late September that preliminary IMF estimates put Ukraine’s funding gap at $30 to $35 billion in 2027, $17 billion in 2028, and $2 billion in 2029, rising to a total of up to $54 billion.
The IMF approved the four-year, $8.1 billion lending program in February 2026. Ukraine received an initial $1.5 billion tranche when the program was approved and another $690 million in July, after completing its first review. Total disbursements under the program have reached approximately $2.2 billion.
The next potential payment of $1.67 billion would cover only part of the shortfall. Meeting the IMF's reform requirements is also important for securing further support from international partners, which Ukraine needs to fund state spending during the war.
IMF staff aim to bring the combined second and third reviews to the fund's executive board by December.
