IMF names conditions for two new tranches to Ukraine

The International Monetary Fund expects to conduct two reviews of the Ukraine financing program before the end of 2026. This will allow consideration of the third and fourth tranches totaling about 1.66 billion dollars. However, to receive funds, Kyiv needs to accelerate reforms, and international partners must confirm their readiness to ensure further financing of the country.

This was announced on October 16 by Mateusz Szczurek, Director of the IMF European Department, during a press conference at the annual meeting of the International Monetary Fund and the World Bank in Bangkok.

According to Szczurek, the fund welcomes the efforts of the Ukrainian government and the Verkhovna Rada to resume reforms, but two key conditions must be met for further progress of the program.

“We plan to conduct the second and third reviews of the program before the end of this year. Of course, this depends on the resumption of reforms, as well as on the provision of financing guarantees by partners,” — stated the IMF representative.

The fund attaches particular importance to legislative changes aimed at increasing state budget revenues and improving public administration.

Szczurek emphasized that the adoption of relevant laws and the implementation of agreed measures are necessary not only for continuing cooperation directly with the IMF, but also for receiving financial support from other international donors already in 2026.

Another mandatory condition remains the confirmation of external financing. International partners must provide sufficiently reliable guarantees to cover Ukraine's projected financial needs. At the same time, the terms of fund provision must meet the country's debt sustainability requirements.

The issue of additional support is of particular importance in light of the preparation of the state budget for 2027. As Szczurek noted, the government's draft budget is based on the assumption that the war will last longer than previously expected.

This increases Ukraine's need for external financing next year. According to the IMF representative, possible changes to the structure of the current program will be discussed during the combined second and third reviews. The fund will provide more detailed information after the completion of the relevant negotiations.

Ukraine expects to receive the next two IMF tranches totaling about 1.66 billion dollars. According to the current Extended Fund Facility program schedule, the second review provides for the allocation of approximately 692 million dollars, and after the third – about 970 million dollars.

It is expected that both reviews may be combined and submitted for consideration by the IMF Executive Board before the end of 2026. However, the final decision on the disbursement of funds has not yet been made.

The new four-year EFF extended financing program totaling 8.1 billion dollars was approved in February 2026. It is part of a larger international financial support mechanism for Ukraine.

In July, the IMF completed the first review of the program and approved the allocation of about 690 million dollars. After that, the total amount of financing provided to Ukraine under the new program reached approximately 2.2 billion dollars.

At the same time, the fund noted a slowdown in structural reforms. Some agreed obligations were fulfilled with delay, and some benchmarks remained unmet. To continue the program, the parties agreed on corrective measures and updated timelines for reform implementation.

Earlier, on October 15, Ukrainian Prime Minister Serhiy Koretskyi reported that the government had completed its part of the obligations to receive international financial assistance. The Cabinet of Ministers adopted the necessary regulatory documents, but some legislative decisions still depend on the Verkhovna Rada.

Thus, further disbursement of IMF funds will depend on Ukraine's implementation of agreed reforms, confirmation of financing by international partners, and a positive decision by the IMF Executive Board.

Based on materials: International Monetary Fund — press conference in Bangkok, IMF — results of the first review of the Ukraine program.