Overview
- If approved, the package would replace Ukraine’s current $15.5 billion IMF facility to support public finances during the war’s fifth year.
- The IMF said Ukraine met required steps, including submitting a draft labor code and adopting the state budget, after dropping several tax-related prior actions.
- Program design assumes the war ends this year, with a downside scenario extending hostilities through 2028, according to IMF officials.
- The Fund now projects Ukraine’s 2025 growth below 2% as the conflict continues to weigh on output and budgets.
- EU financing of €90 billion is linked to IMF approval, while the World Bank, the EU, and Ukraine prepare a higher reconstruction cost estimate expected next week.