The International Monetary Fund has reached a staff-level agreement with Ukraine on the first review of the four-year $8.1 billion Extended Fund Facility (EFF) program, according to an IMF press release.
Subject to approval by the IMF Executive Board, Ukraine will gain access to approximately $690 million in additional funding. This would increase total disbursements under the program to $2.2 billion.
The IMF said Ukraine met all end-March quantitative performance criteria and indicative targets. However, progress on some structural reforms was slower than expected, with two structural benchmarks completed late and one benchmark missed.
The Fund noted that Ukraine’s economic outlook remains highly uncertain due to the ongoing war and its impact on both the population and the economy. Spillover effects from the conflict in the Middle East are also affecting the outlook.
According to IMF projections, Ukraine’s GDP growth is expected to slow to between 1% and 1.6% in 2026.
Among the key commitments under the program are continued tax reforms and efforts to reduce the size of the informal economy. The measures include removing the VAT exemption for international parcels, strengthening transfer pricing controls, and addressing abuses of the simplified tax regime.
The IMF also highlighted reforms in the energy sector. According to the Fund, Ukraine is preparing a roadmap for the gradual liberalization of the energy market with IMF technical assistance.
Once social protection mechanisms for vulnerable households are in place, utility tariffs for households should be gradually adjusted to improve the financial position of energy companies and attract investment into the sector.
The IMF also called for renewed anti-corruption efforts, stronger corporate governance at state-owned enterprises and banks, and continued reforms of the Economic Security Bureau and the customs service.
The Fund positively assessed the work of the National Bank of Ukraine in maintaining financial stability, controlling inflation, and preserving international reserves.
The IMF mission held discussions with Prime Minister Yuliia Svyrydenko, Head of the Presidential Office Kyrylo Budanov, National Bank Governor Andriy Pyshnyi, Finance Minister Serhii Marchenko, and other Ukrainian officials.
