IMF may approve new loan program for Ukraine within weeks
Photo: Ukraine hopes for IMF program approval within weeks (Getty Images)
The International Monetary Fund (IMF) may approve a new loan program for Ukraine within a few weeks, according to Yurii Butsa, the Ukrainian government's representative for public debt management.
"I would expect it in a matter of weeks. I think February is still doable in terms of a timeline," says Butsa.
According to him, after the war ends, Ukraine will most likely not rush to take out new loans on international markets. The state will rely on preferential financing and domestic borrowing in the national currency, which will allow it to avoid currency risks.
Also, according to the IMF program, the government has significant restrictions on providing state guarantees. Because of this, Ukraine will not be able to guarantee the obligations of state-owned companies to restructure their debts.
"We have very severe limitations on the sovereign guarantees, because it's all part of the same DSA. So we cannot really issue guarantees, whereas it could help the firms draw up proper long-term business models," Butsa explains.
He specifies that one of the key areas this year will be the gradual easing of currency restrictions introduced during the war.
The next important step could be to allow foreign investors to withdraw the principal amount of their investments in local currency bonds.
New IMF loan for Ukraine
In November 2025, Ukraine and the IMF reached a preliminary agreement to launch a new four-year financing program worth $8.1 billion.
At the same time, receiving the funds requires fulfilling a number of conditions. Ukraine has already fulfilled one of them — the Verkhovna Rada has approved the state budget for 2026.
Among other IMF requirements is the introduction of VAT for individual entrepreneurs with an annual income of more than UAH 1 million.
However, this provision has been criticized. Experts warn that it could contribute to the growth of the shadow economy, and consider the established income threshold to be too low and in need of revision.
Ukraine has not yet confirmed its readiness to fulfill all the conditions of the program, in particular regarding VAT for sole proprietors.
Against this backdrop, IMF Managing Director Kristalina Georgieva said during her visit to Kyiv in January this year that the Fund could give Ukraine up to one year to adopt the necessary changes regarding this tax.
