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IMF Eases Conditions on Ukraine’s $8.2 Billion Program as Board Review Nears

Kyiv says the sign-off would unlock a €90 billion EU loan tied to deferring contentious tax changes.

Overview

  • Prime Minister Yuliia Svyrydenko said the IMF streamlined November terms, dropping pre‑board requirements on VAT for sole traders, parcel duties, a digital platforms tax and retention of the wartime levy.
  • Under the revised approach, VAT for individual entrepreneurs would begin above a 4 million‑hryvnia revenue threshold, reducing those affected to about 250,000.
  • The IMF executive board is expected to consider the four‑year Extended Fund Facility at its next meeting, and Ukraine anticipates approval within weeks.
  • Officials say the program’s approval is a prerequisite for releasing a €90 billion EU financing package.
  • Ukraine’s economic outlook has deteriorated after intensified Russian strikes on energy infrastructure, and the central bank now projects 1.8% GDP growth in 2026.