On February 26, the Board of Directors of the International Monetary Fund (IMF) approved a new four-year extended financing program for Ukraine for $8.1 billion.
This was reported by the Ministry of Finance of Ukraine.
This is money to cover the budget deficit — primarily for paying pensions, salaries to teachers and doctors, social assistance, and financing medicine and education in times of war. The first tranche — $1.5 billion — is expected to be received by Ukraine in the near future.
The program is designed for 2026-2029. It replaces the previous cooperation model, which was approved in 2023, when it was expected that the active phase of the war would end sooner. Now the IMF has taken into account that the war is ongoing and the costs remain high.
According to Finance Minister Serhiy Marchenko, the program includes stricter fiscal discipline. Among the conditions are deficit control, price and financial system stability, as well as changes in tax and anti-corruption policies and labor market rules.
According to the government and the International Monetary Fund, Ukraine will need approximately $136.5 billion in external financing in 2026-2029.
- The International Monetary Fund (IMF) is a UN agency created in 1945 to regulate monetary relations, financial stability, and provide loans to countries with budget deficits.
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