IMF Welcomes EU’s €90 Billion Loan to Ukraine, Work on Financing Continues

The International Monetary Fund (IMF) welcomed the European Union’s decision to lend €90 billion ($105 billion) to Ukraine over the next two years, calling it a key step toward closing financing gaps and restoring debt sustainability. The EU opted to borrow funds for this loan rather than use frozen Russian assets, providing crucial support to Ukraine, which has relied heavily on donor aid since Russia’s full-scale invasion in 2022 disrupted its economy.

The IMF has highlighted that additional measures are needed before approving Ukraine’s new $8.1 billion lending programme. These include implementing a program-consistent budget for 2026, broadening the tax base, promoting anti-corruption reforms, and securing financing assurances from international donors. The Fund estimates Ukraine will need around €135 billion ($158.57 billion) for 2026–2027, with the interest-free EU loan covering roughly two-thirds of these needs.

Despite the new financial support, Ukraine faces ongoing economic pressures as the war continues to drain resources. Finance Minister Sergii Marchenko emphasized the importance of implementing a Reparations Loan, while the country plans to allocate about 27% of its GDP, or 2.8 trillion hryvnias, to defence spending in 2026. The IMF reaffirmed its commitment to working with international donors to ensure sustainable financing for Ukraine.

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