Overview
- The new Extended Fund Facility replaces a 2023 arrangement and is intended to anchor about $136.5 billion in international support through 2029.
- Roughly $1.5 billion will be disbursed now, with Ukrainian officials saying the funds will cover the budget deficit and support macrofinancial stability.
- IMF prior tax actions were softened or postponed, but Ukraine must adopt a VAT-threshold measure for sole traders by the end of March to keep disbursements on track.
- Program conditions emphasize anti-corruption, formalizing economic activity, energy-market reform, and stronger financial infrastructure, with scope to recalibrate if peace talks succeed.
- A separate EU €90 billion loan remains blocked by Hungary over a Druzhba pipeline dispute, leaving a large 2026 funding gap near $50 billion and heightening fiscal risk without additional aid.