Budget support, IMF negotiations, and a Memorandum on debt service suspension: Results of the working visit to the IMF and World Bank Spring Meetings

On April 13-17, the Ministry of Finance of Ukraine delegation, led by Finance Minister Sergii Marchenko, took part in the IMF and World Bank Spring Meetings.

Over five days, the delegation held more than 70 meetings with international financial leaders, including finance ministers of the G7 and EU countries, as well as the leadership of the International Monetary Fund, the World Bank, the European Investment Bank, and the European Bank for Reconstruction and Development.

The Finance Minister and Prime Minister Yulia Svyrydenko also delivered speeches at the Ukraine Support  Roundtable and the G7 Finance Track meeting.

The key topics discussed included:

• Budget support for Ukraine in 2026–2027;

• Launch of the EU’s Ukraine Support Loan instrument;

• Terms of cooperation under the IMF program;

• Support for Ukraine’s energy system.

In 2026, Ukraine’s external financing needs are estimated at around USD 52 billion. Joint efforts with partners are ongoing to secure the full amount of required funding.

During meetings with EU and G7 finance ministers and representatives of the European Commission, participants reviewed the implementation of key budget support mechanisms, including ERA Loans, the EU’s Ukraine Facility, the IMF’s Extended Fund Facility (EFF) program, and the EU’s Ukraine Support Loan.

European Commissioners signaled positive prospects regarding a EUR 90 billion Ukraine Support Loan. Unlocking these funds would fully cover Ukraine’s financial needs for 2026.

Partners also confirmed that the European Union plans to allocate up to €2.7 billion to Ukraine following the Verkhovna Rada’s adoption of the necessary decisions under the Ukraine Facility last week.

At the same time, Sergii Marchenko called for the creation of a rapid response mechanism to enable swift financing of urgent needs, particularly in energy security and infrastructure recovery amid ongoing attacks.

The Ministry of Finance leadership and the IMF also discussed the terms of the Extended Fund Facility program and agreed to continue cooperation on identifying alternative solutions to ensure budget revenues.

Cooperation with the World Bank, EBRD, and EIB focused on implementing existing projects and launching new ones. The joint project portfolio with these institutions is currently the largest in the history of cooperation. Key areas include energy support, given Russia’s intensified attacks on critical infrastructure, as well as improving living conditions through housing financing and the restoration of social infrastructure.

A major outcome of the Spring Meetings was the signing of a Memorandum of Understanding on the suspension of payments on Ukraine’s state and state-guaranteed debt. The document was signed by Finance Minister Sergii Marchenko and authorized representatives of creditor countries, including Canada, France, Germany, Japan, Italy, the Netherlands, the United Kingdom, the United States, and the Republic of Korea.

The Memorandum provides for the suspension of debt service payments due from February 2026. Under its terms, debt servicing and repayment will be deferred until the end of February 2030, in line with the new IMF program. The signing of the Memorandum reflects a high level of trust between Ukraine and its international partners.

The IMF and World Bank Spring Meetings are a key global platform where the agenda for financial support is shaped. They provide an opportunity to secure decisions critical to the sustainability of public finances.