Ukraine’s budget now has enough funds to operate until early May 2026 and continue financing the country’s defense. This became possible after the IMF approved the loan and released the first tranche of $1.5 billion.
Politico reported this, citing sources familiar with Kyiv’s financial situation.
Details
Previously, experts feared the country would run out of funds by the end of March due to a budget deficit exceeding $50 billion this year.
The approval also gives the European Union extra time to address the blocked €90 billion loan. Hungary delayed it amid a dispute over repairs to the damaged Druzhba pipeline. The pipeline suffered damage from Russian shelling, but Hungary accused Ukraine of halting gas transit.
Additionally, Elco Heinen told colleagues that the Netherlands will provide Ukraine with €3.5 billion per year as bilateral support through 2029. This additional funding helps Ukraine plan its budget and defense over the medium term.
At the same time, the IMF requires Ukraine to pass several tax reforms by the end of March to continue the program.
Context
The IMF loan provides macro-financial support to stabilize Ukraine’s state budget and economy during the war with Russia. Ukraine will use the funds to cover the budget deficit, pay social and pension obligations, and finance defense needs.
Earlier, The Ukrainian Review reported that the U.S. and the EU are developing a 10-year economic recovery program for Ukraine after the full-scale Russian invasion.
