The International Monetary Fund has approved a new four-year loan program for Ukraine worth about $8.1 billion, with $1.5 billion released immediately to help keep the government running as the war with Russia enters its fifth year. The IMF Executive Board approved the Extended Fund Facility (EFF) on February 26, 2026, in the same week as the fourth anniversary of the full-scale invasion.

Anchoring a $136.5 billion package

The new arrangement, equal to 295 percent of Ukraine’s IMF quota, replaces the $15.5 billion program approved in 2023. The IMF said it will help anchor a total international support package of $136.5 billion over the four-year program. Ukraine’s financing gap for 2026 alone is estimated at $52 billion, to be covered by EU facilities, G7 financing backed by Russian assets, bilateral support and the IMF program.

Ukraine’s official creditors also committed to extend the current freeze on debt payments and to complete a final debt deal once uncertainty about the war is resolved.

“Remarkable resilience”

“Ukraine and its people have weathered a long and devastating war for over four years with remarkable resilience,” said IMF Managing Director Kristalina Georgieva. She credited Ukrainian authorities with maintaining macroeconomic and financial stability, raising domestic revenue, rebuilding reserves and keeping inflation in check.

Georgieva said the program aims to resolve Ukraine’s balance of payments problem, restore medium-term external viability and support reconstruction and Ukraine’s path to European Union membership. It will be quickly recalibrated if peace negotiations succeed.

Reforms required

In return, Ukraine has committed to a series of reforms, including:

  • a sound 2026 budget and higher revenue through fairer taxation and less tax evasion;
  • greater exchange rate flexibility and steps to keep prices stable;
  • stronger tax administration, governance and anti-corruption frameworks;
  • energy market reform and better financial market infrastructure to support private lending and reconstruction.

The IMF described the risks to the program as “exceptionally high,” noting that success depends on continued international financing and steady reform. Its projections show Ukraine’s public debt rising to about 122.6 percent of GDP by the end of 2026, with inflation slowing to around 6 percent and growth of roughly 2 percent.

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