English Section
Follow us on Google

Follow us on Google to get our latest news at the top of your search results

IMF approves $690m tranche for Ukraine

21.07.2026 11:10
The IMF's board completed its review of Ukraine's financing terms on Monday evening, paving the way for Kyiv's immediate access to roughly USD 690 million.
A specialist machinery repair workshop destroyed in a Russian strike on Odesa, south-western Ukraine, on Monday.
A specialist machinery repair workshop destroyed in a Russian strike on Odesa, south-western Ukraine, on Monday.Photo: PAP/Alena Solomonova

The funds are the latest instalment under the broader USD 15.6 billion Extended Fund Facility loan, which is due to be paid out to Ukraine over four years as it fights off Moscow's assault.

Further disbursements depend on Kyiv continuing tax reforms in line with the programme's conditions.

The board found that Ukraine had "maintained macroeconomic and financial stability despite Russia’s continuing war," though it cautioned that the economic outlook has worsened, largely due to intensified attacks on critical infrastructure and knock-on effects from the war in the Middle East.

The pace of reform implementation "has slowed, with several structural benchmarks completed with a delay or missed," the International Monetary Fund (IMF) said.

It judged, however, the overall compliance with the conditions attached to the tranche to be broadly satisfactory, noting that all quantitative performance criteria and indicative targets were met by the end of March.

Monday's board meeting followed an agreement reached with Kyiv last month covering a revised timetable for implementing reforms, corrective steps to address delays and additional policy commitments.

Bloomberg had reported that the IMF agreed to postpone a Ukrainian law that would have applied 20 percent VAT plus extra charges to overseas parcels worth more than EUR 45 – legislation parliament failed to pass amid strong public opposition.

This also covered an earlier commitment to apply VAT to some self-employed workers, originally due by last April.

Bloomberg noted that the prolonged war has significantly widened Ukraine's budget deficit, pushing the government to seek new revenue sources, with the gap largely covered by foreign partners including the IMF.

IMF Managing Director Kristalina Georgieva said on Monday that "preserving macroeconomic stability remains the immediate priority" for Ukraine.

She called for prudent fiscal and monetary policies and "measures to safeguard financial-sector resilience."

(ał)

Source: PAP, IAR