An International Monetary Fund (IMF) monitoring mission has started its eighth review of the $15.5 billion Extended Fund Facility program aimed at supporting Ukraine through its ongoing war with Russia. The review, initiated on Tuesday, will focus on critical issues including Ukraine’s battered economy, budget needs, and necessary reforms.
Central Bank Governor Andriy Pyshnyi expressed optimism about the talks, stating, “We look forward to constructive and substantive discussions. We are starting from good positions.” He emphasized that the IMF program remains a vital source of resilience for Ukraine during this challenging period.
The conflict, now entering its fourth year, has devastated Ukraine’s economy. The country’s gross domestic product (GDP) fell nearly 30% in the first year of the war, with millions displaced and critical infrastructure severely damaged. Although economic output remains below pre-war levels, modest growth was recorded in 2023 and 2024.
Discussions with the IMF are expected to cover how Ukraine can finance its budget needs and maintain debt sustainability. This includes securing continued financial aid from international partners and increasing domestic revenue mobilization. While Ukraine’s 2025 budget is reportedly secured through foreign aid, concerns persist about future international economic support.
Ukraine allocates most of its domestic revenues to defense, relying heavily on Western allies for humanitarian and social spending. The government plans for a budget deficit of approximately $38 billion this year.
The review will also examine reforms to strengthen Ukraine’s financial sector stability. Key topics include enhanced state regulation of credit bureaus and development of financial market infrastructure, critical for long-term economic recovery.
As Ukraine continues to face immense challenges, the IMF program’s support remains crucial for the country’s resilience and recovery prospects.
