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Investing.com -- The International Monetary Fund has reached a staff-level agreement with Ukraine on a new 48-month Extended Fund Facility arrangement worth approximately $8.2 billion.
The deal, announced Wednesday, comes as Russia’s war continues to severely impact Ukraine’s economy and infrastructure, with recent intensification of attacks on energy and other critical facilities.
Ukrainian authorities have committed to maintaining macroeconomic stability, restoring debt sustainability, and addressing corruption despite wartime challenges. The program aims to serve as an anchor for Ukraine’s medium-term economic plans and help mobilize additional international support.
"The economy has continued to show resilience despite the recent intensification of attacks," said Gavin Gray, who led the IMF team during discussions held November 17-21 in Kyiv.
The agreement identifies a total financing gap of approximately $136.5 billion for 2026-29, with a residual gap of around $63 billion for 2026-27 after accounting for existing financing commitments.
As part of the deal, Ukraine has committed to enacting a 2026 budget aligned with program requirements, implementing domestic revenue mobilization measures, and accelerating efforts to prevent tax evasion. Specific measures include taxing income earned through digital platforms, closing customs loopholes for consumer good imports, and removing exemptions for VAT registration.
The National Bank of Ukraine will work toward reducing inflation to its 5 percent target over a three-year policy horizon while allowing greater exchange rate flexibility.
The IMF emphasized that prompt action from international donors is "indispensable" to help Ukraine manage its large fiscal and external financing needs and avoid liquidity strains.
The program will be brought to the IMF’s Executive Board for approval upon completion of prior actions and subject to adequate financing assurances from donors. The IMF noted the program will be recalibrated as needed depending on progress toward resolving the war.
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