IMF Executive Board Approves $8.1 billion under an Extended Fund Facility Arrangement for Ukraine

Today, February 26, the Executive Board of the International Monetary Fund (IMF) approved a new four-year Extended Fund Facility (EFF) program for Ukraine. The program provides USD 8.1 billion in financing to support Ukraine’s State Budget needs.

The first tranche, amounting to USD 1.5 billion, is expected to be disbursed in the near term.

The new program will run from 2026 to 2029 and reflects the updated macroeconomic and security conditions facing the country.

The previous IMF program, approved in 2023, was based on a scenario in which the active phase of the full-scale war would end and Ukraine would transition to a large-scale recovery phase. However, the ongoing full-scale war continues to generate significant current and medium-term fiscal needs. This required adjusting the parameters of cooperation in line with new geopolitical and macro-financial realities.

Minister of Finance of Ukraine Sergii Marchenko stated:

“I am grateful to the IMF Executive Board for approving the Extended Fund Facility for Ukraine. This is an important signal of trust and support for Ukraine. Ukraine and the Fund have worked extensively to achieve this result. The new EFF program aims to strengthen the economy and the financial system, while also helping mobilize additional financial resources from donors. It builds on the achievements of the 2023 program, while intensifying efforts to reduce the shadow economy and mobilize domestic budget revenues.”

The program’s macroeconomic priorities include:

• implementing prudent fiscal policy, including measures to strengthen revenue mobilization by ensuring a level playing field and reducing tax evasion;
• ensuring price stability and preventing external imbalances, including by increasing exchange rate flexibility;
• maintaining financial sector stability.

Ukraine also commits to implementing ambitious structural reforms to ensure effective post-war recovery and advance toward EU membership. These include strengthening fiscal institutions and tax administration, enhancing governance and anti-corruption systems, developing the financial and capital market infrastructure for post-war reconstruction supported by private capital, and promoting a market-based economy.

The new program will also help mobilize substantial external financial support to cover budget needs. According to joint estimates by the Government of Ukraine and the IMF, the total external financing gap for 2026-2029 is projected at about USD 136.5 billion under the baseline scenario.

Ahead of the IMF Executive Board meeting, Ukraine completed three prior actions required to launch the new program:

• adoption of the 2026 State Budget in line with the parameters of the new program;
• approval of a Cabinet of Ministers resolution ensuring equal conditions for VAT payers in competitive public procurement procedures;
• submission to Parliament of a draft new Labour Code, which, among other provisions, revises the definition of “employment” to reduce opportunities for disguised labor relations.

IMF Managing Director Kristalina Georgieva commended the resilience of Ukraine and its people amid the prolonged war. She also praised the authorities’ efforts to preserve macroeconomic and financial stability and advance key reforms. The IMF will continue to support Ukraine, including through the new EFF program, to promote economic recovery and progress toward EU membership.