IMF to provide Ukraine with $8.2 billion over 4 years under extended agreement
The International Monetary Fund (IMF) has reached a staff-level agreement with Ukraine to provide the embattled country with $8.2 billion over 4 years through a renewed agreement under the Extended Fund Facility (EFF).
"Russia’s war continues to take a heavy toll on Ukraine’s people and its economy," the IMF wrote in a news release. "The agreement covers a set of fiscal and monetary policies to anchor the program, whose goals include maintaining macroeconomic stability, restoring debt sustainability and external viability, tackling corruption, and improving governance."
Ukraine has thus far received $10.6 billion under a current $15 billion IMF program, which will expire in 2027. The renewed agreement will help support Ukraine's economic stability between 2026–2029.
Ukrainian officials requested assistance from the organization in September 2025 to help cushion its stretched finances
Ukraine spends all of its own tax revenues on the military — about $62.8 billion next year, according to the draft state budget for 2026 — and relies on foreign financing to pay for everything else, including pensions, schools, and hospitals. But the country is rapidly approaching a sharp drop in promised aid, and needs $61 billion to balance its books in 2026 and 2027.
The new IMF funding would play a small but important role in plugging the financing gap.
"Prompt action by donors is indispensable to assist Ukraine in managing its large fiscal and external financing needs, and to avoid liquidity strains," the IMF wrote, adding that they "welcome all efforts to secure a durable peace, and the program will be recalibrated as needed at each review depending on progress towards a resolution of the war."
The agreement serve as monitor for Ukraine's reform agenda, with Kyiv agreeing to the completion of specific measures to be eligible to receive the funding. The measure include preserving independent anti-corruption institutions and tax fraud prevention, increasing competition in public procurement, and broadening the tax base, as well as other macroeconomic efforts to ensure fiscal stability.
The extended funding still needs approval from the IMF’s Executive Board, and is subject to Kyiv's "completion of the prior actions" and will "adequate financing assurances from donors."
News of the agreement comes as the EU is preparing a legal document to seal a reparations loan after European countries previously failed to back a 140-billion-euro initiative — an elaborate legal and financial plan to lend Russia's central bank reserves to Ukraine, which were frozen by sanctions after Russia's full-scale invasion.
The document is expected to be released within days, Bloomberg reported, citing its sources, as Ukraine is expected to continue negotiation on U.S. President Donald Trump's 28-point peace plan.
