IMF pushes Ukraine to raise Western aid shortfall forecast to $65 billion – Bloomberg
Photo: Kyiv and the IMF are preparing a new loan program amid rising costs (Getty Images)
Ukraine and the IMF have agreed to increase financing needs until the end of 2027. Most of the funds can be provided from frozen Russian assets, according to Bloomberg.
The International Monetary Fund has convinced the Ukrainian government to significantly increase its forecast for additional funds that the country will need by the end of 2027. We are talking about $65 billion, while Kyiv previously estimated the deficit at $38 billion.
Bloomberg sources note that it was after discussions with the IMF that the forecast was revised upward. Officially, the parties have not yet commented on the details of the negotiations.
Disagreements over amount of aid
Earlier, it was reported that Kyiv and the IMF had different assessments of financing needs. Ukraine has already exhausted most of the resources under the current $15.5 billion program, which runs until 2027.
The new loan package is planned for a period of four years. Negotiations on its parameters are to take place in November, and the amount of financing under discussion may be around $8 billion.
European Union's role and frozen assets
The calculations agreed with the IMF have already been submitted to the European Commission. As Ukraine's main donor, the EU plans to cover a significant part of the amount with frozen Russian assets.
Previously, only the income from these assets was discussed, but now Brussels is considering using the funds themselves. Recall that they were blocked shortly after the start of the full-scale invasion of the Russian Federation in February 2022.
War impact and US position
According to the IMF, the increase in needs is linked to Ukraine's increased military budget and risks to financial stability. A separate challenge remains the decline in the US willingness to continue support, especially under the Donald Trump administration.
President Volodymyr Zelenskyy will meet with Trump on September 23 on the sidelines of the UN General Assembly in New York. Other bilateral talks on aid and support for Ukraine are also planned.
Earlier, the Ukrainian Ministry of Finance stated that Ukraine's foreign aid needs for 2026-2027 amount to $75 billion. However, the source of $37.4 billion has not been identified.
The National Bank of Ukraine estimated Ukraine's needs for two years at $65 billion, of which two-thirds are still in question.
