IMF Approves $8.1 Billion Loan for Ukraine, Unlocking Immediate $1.5 Billion Tranche

The IMF Executive Board has approved a new $8.1 billion Extended Fund Facility program for Ukraine, which will span four years, Ukraine’s Prime Minister Yulia Svyrydenko wrote in a post on X on February 27.

The first tranche, approximately $1.5 billion, is expected to be disbursed soon. This financial package is crucial for covering Ukraine’s budget deficit and maintaining macrofinancial stability amid ongoing Russian attacks on the country’s energy infrastructure during the fifth year of the Russian full-scale invasion of Ukraine.

Ukraine’s Security Service (SBU) had previously classified Russia’s systematic strikes on Ukraine’s energy infrastructure as crimes against humanity, citing extensive evidence that the attacks are aimed at destroying civilian living conditions.

According to SBU, its investigators have documented a sustained campaign by Russia targeting power generation and heating systems as part of a broader policy directed against Ukraine’s civilian population.

“Ukraine gets guaranteed international financial support from its partners and resources for the stable functioning of the state,” Svyrydenko wrote.

The program is part of a broader financial framework designed to address Ukraine’s projected $136.5 billion budget deficit over the next four years. It hinges on the continuation of reforms that have helped maintain macroeconomic stability in previous years.

This new IMF-backed program will also serve as a foundation for additional international financial support, including the €90 billion ($106 billion) loan from the European Union and further assistance from the G7 countries and other international institutions.

“In addition to the EU funding, there is also funding from the G7 countries, international financial institutions, and a reduction in debt payments on official debt through a debt relief mechanism,” Svyrydenko wrote.

“The partners confirmed the continuation of the current moratorium on servicing official debt and their readiness to complete the restructuring after the situation stabilizes,” she continued.

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Svyrydenko expressed gratitude to all the teams involved in securing this vital support, including Ukrainian President Volodymyr Zelenskyy, the Ukrainian government, the National Bank of Ukraine, and the IMF.

She also thanked the IMF management for their consistent support and special appreciation to Kristalina Georgieva, Managing Director of the IMF, for her recent visit to Kyiv.

Earlier, Ukraine had reached a staff-level agreement with the International Monetary Fund (IMF) on a new four-year support program worth $8.2 billion.

Svyrydenko stated that the agreement resulted from a week of intensive work in Kyiv with an IMF mission led by Gavin Gray, describing the outcome as a positive result for Ukraine.

She stated that the total volume of the program is $8.2 billion over four years and that “this program will help finance critical expenditures, preserve macrofinancial stability and attract additional external support, which is critically important for us in the coming years.”

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