The International Monetary Fund (IMF) announced on Wednesday that it has reached a staff-level agreement with the Ukrainian authorities on approving their request for a new 48-month arrangement under the Extended Fund Facility (EFF), which would provide access to approximately $8.2 billion.
The agreement covers a set of fiscal and monetary policies that will underpin the program. Its objectives include maintaining macroeconomic stability, restoring public debt sustainability and external viability, combating corruption, and improving governance. The program is expected to help mobilize large-scale external support to cover Ukraine’s financing needs. Under the baseline scenario, the total financing gap for 2026–2029 is estimated at around $136.5 billion, according to IMF mission chief Gavin Gray.
Gray also emphasized that Ukrainian authorities “firmly believe” that after eight successful reviews of the previous EFF, the new arrangement will provide “a strong anchor for their medium-term plans and support their efforts to mobilize much-needed external assistance.”
Program components
According to the IMF, the agreement encompasses a comprehensive set of fiscal, monetary, and structural policies intended to support economic stabilization amid wartime conditions. Key elements of the program include:
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preserving macro-financial stability and controlling inflation;
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restoring public debt sustainability, including managing future obligations;
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strengthening external viability and ensuring adequate international reserves;
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modernizing the tax system, expanding the tax base, and combating tax-minimization schemes;
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increasing transparency and advancing anti-corruption reforms in tax, customs, and judicial sectors;
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improving corporate governance in state-owned enterprises, including reforms at Naftogaz, Ukrzaliznytsia, and Ukrenergo;
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enhancing public-investment management and the efficiency of budget expenditures.
The new IMF arrangement is traditionally viewed as a signal of confidence from international partners, a confirmation of predictable fiscal and monetary policy, and a foundation for attracting additional financing from the EU, the World Bank, the G7, and other donors.
