IMF Approves $8.1bn Extended Fund Facility for Ukraine Under New 48-Month Programme
The Executive Board of the International Monetary Fund has approved a new 48-month extended arrangement for Ukraine under the Extended Fund Facility (EFF), amounting to SDR 5.9353 billion (approximately US$8.1 billion or 295 percent of quota).
The approval forms part of a broader US$136.5 billion international support package for Ukraine and allows for the immediate disbursement of SDR 1.1 billion (about US$1.5 billion).
The new programme follows the cancellation of the 2023 EFF arrangement, as Russia’s ongoing war and the limited remaining timeframe under the previous programme were deemed insufficient to restore external viability. Ukrainian authorities therefore requested a fresh IMF-supported extended arrangement to address the country’s balance of payments pressures and re-establish medium-term external sustainability under the Fund’s policy on upper credit tranche lending amid exceptionally high uncertainty.
The overarching objectives of the new programme are to preserve macroeconomic and financial stability, restore debt sustainability under both baseline and downside scenarios, and accelerate structural reforms to underpin post-war reconstruction and support Ukraine’s accession ambitions to the European Union.
Under the programme, macroeconomic priorities include implementing prudent fiscal policy anchored on a sound 2026 budget, boosting domestic revenue mobilisation by curbing tax evasion and avoidance, safeguarding price stability, allowing for greater exchange rate flexibility to mitigate external imbalances, and preserving financial sector stability.
The authorities have also committed to an ambitious structural reform agenda focused on strengthening fiscal institutions and tax administration, enhancing governance and anti-corruption frameworks, developing financial and capital market infrastructure to support reconstruction, and promoting a market-based economy.
Over the four-year programme period, a financing gap of US$136.5 billion is expected to be closed through committed donor support and debt flow relief. In 2026 alone, a US$52 billion gap is projected to be covered through disbursements under European Union facilities, G7 ERA financing, bilateral support and the newly approved IMF arrangement. The Group of Creditors of Ukraine has also committed to extending the current debt standstill and completing definitive debt treatment after the resolution of exceptionally high uncertainty.
Commenting on the approval, IMF Managing Director, Kristalina Georgieva, noted that despite enduring more than four years of war, Ukraine has demonstrated resilience supported by sound policymaking and substantial international assistance. She indicated that the new arrangement seeks to consolidate macroeconomic stability, deepen structural reforms and resolve balance of payments challenges while laying the foundation for post-war growth and EU accession.
She added that risks to the programme remain exceptionally high, stressing that its success will hinge on sustained international financial support and the authorities’ continued commitment to implementing ambitious reforms.
