June 12, 2026
PRESS OFFICER: Camila Perez
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Washington D.C.: An International Monetary Fund (IMF) team led by Mr. Gavin Gray held discussions with the Ukrainian authorities during a virtual and in person mission in the context of the First Review of the four-year Extended Fund Facility (EFF) Arrangement and the 2026 Article IV Consultation. At the end of the discussions, Mr. Gray issued the following statement:
“IMF staff and the Ukrainian authorities have reached staff-level agreement on the First Review of the EFF. Subject to approval by the IMF Executive Board, Ukraine would have access to about US$690 million (SDR 503 million), bringing total disbursements under the program to US$2.2 billion.
“Ukraine’s four-year EFF provides an anchor for the authorities’ economic program in times of exceptionally high uncertainty. All quantitative performance criteria and indicative targets for end-March have been met, whereas progress on structural reforms has slowed. Staff-level agreement has been reached on the basis of a revised timeline for agreed reforms, corrective actions to address slippages, and additional policy commitments. The Article IV discussions focused on policies to promote strong post-war growth by creating a dynamic market-based economy, including reforms to make the tax system more growth friendly and policies to reduce the large informal sector.
“Macroeconomic stability has been broadly maintained, despite Russia’s war as well as spillovers from the war in the Middle East, through sound macroeconomic policies and large-scale external support from Ukraine’s partners. The National Bank of Ukraine (NBU) has maintained adequate international reserves, preserved financial stability and kept inflation expectations anchored despite shocks. However, GDP growth is projected to slow to 1.0-1.6 percent in 2026 due to the impacts of Russia’s ongoing war in Ukraine, and spillovers from the war in the Middle East, and risks remain exceptionally high.
“Fiscal policy needs to be implemented in line with financing constraints and consistent with the restoration of debt sustainability. The authorities need to guard against expenditure overruns, stand ready to mobilize additional domestic revenues, identify potential offsetting savings, and be ready to ramp up domestic financing. As expenditures will remain elevated over the medium term, including for defense and reconstruction, sustained efforts are needed to improve tax administration and tax policy in order to mobilize revenues.
Reducing the size of the informal economy—an important pillar of the program—remains the fairest and most effective way to mobilize essential revenues while supporting growth. Such reforms will help level the playing field, improve the business environment and better position Ukraine to compete successfully in the EU single market. Delivering on this agenda will require determined actions to agree on legislative changes and implement administrative reforms.
“Commitments under the program include removing the VAT customs exemption for parcels, which will close a loophole and help reduce non-essential imports, as well as measures to tackle international transfer pricing to eliminate the ability of companies to use unfair tax arbitrage to avoid paying taxes in Ukraine. Reforms to curb abuse of the simplified tax regime remain essential, including rules to tackle business splitting and opportunistic switching between tax regimes, and to eliminate disguised employment. To support these goals and in particular successfully reform to the simplified tax regime the authorities have agreed on a package of measures to streamline tax administration and reduce compliance costs for honest taxpayers, while strengthening risk-based enforcement. Supporting institutional change at the Economic Security Bureau and the State Customs Service will also make a difference in combatting tax evasion.
“The independence of the NBU remains a critical pillar for maintaining macrofinancial stability. Amid supply-side shocks and a closed output gap, the NBU has appropriately delayed its easing cycle and adopted a tightening bias to guide expectations. The exchange rate has become more flexible, which is enhancing its role as a shock absorber, helping safeguard reserves, and guarding against a buildup of external imbalances. The conditions-based approach to FX liberalization should continue, consistent with the overall monetary and exchange rate policy mix and external stability objectives.
“In the energy sector, the focus is shifting to reforms to prepare for market liberalization. The current system of household utility tariffs and related public service obligations have weakened the financial position of state-owned energy companies, limiting resources for critical investment and repairs. To rectify the situation, the authorities are preparing, with technical assistance provided by the IMF, a roadmap for gradually liberalizing the energy market, involving social protection mechanisms for vulnerable households. Once such mechanisms are ready and based on the roadmap, household tariffs should be gradually adjusted to address financial challenges facing the sector and better position it to attract investment. Enhancing the integrity and independence of the energy regulator (NEURC) would further support the sector's long-term sustainability.
“Reforms to strengthen governance and enhance anti-corruption institutions need to be reinvigorated. Staff welcomed the authorities’ continued work to strengthen the asset declaration framework through a more risk-based approach. Recent corruption cases have underscored the importance of accelerating reforms to the governance of state-owned enterprises and banks. Continued efforts to strengthen supervisory boards, complete merit-based management appointments, improve transparency and accountability, and address identified governance weaknesses will be critical to safeguarding public resources and restoring confidence. As the authorities explore options for professional management of state assets, well-functioning supervisory boards and effective fiscal risk management will be key pre-requisites to preserve the value of national assets, contain fiscal risks, and support private investment and reconstruction.
“Banks remain well capitalized, liquid, and highly provisioned, and have expanded credit supply since 2024 despite the challenging environment. Under the program, the authorities are committed to reforms to better position Ukraine to attract private investment for post-war reconstruction, including by enhancing financial sector resilience, supervision, and crisis management, as well as developing financial and capital market infrastructure in line with international standards.
“The mission met with Prime Minister Svyrydenko, Head of the Office of the President of Ukraine Budanov, National Bank of Ukraine Governor Pyshnyy, Finance Minister Marchenko, other government ministers, public officials, and civil society. The mission thanks them and their staff for the excellent collaboration and constructive discussions.”
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