Ukraine and the IMF agreed to increase financing needs until the end of 2027. Most of the funds could be secured by frozen Russian assets.
Reported by Bloomberg.
The International Monetary Fund convinced the Ukrainian government to significantly increase the forecast of additional funds needed by the country until the end of 2027. It is about $65 billion, whereas earlier Kyiv estimated the deficit at $38 billion.
Bloomberg sources note that it was after discussions with the IMF that the forecast was revised upwards. Officially, the parties have not yet commented on the details of the negotiations.
It was previously reported that Kyiv and the IMF had different assessments of financial needs. Ukraine has already exhausted most of the resources under the current $15.5 billion program, which is in effect until 2027.
The new loan package is planned for four years. Negotiations on its parameters are to take place in November, and the amount of discussed financing may amount to about $8 billion.
The calculations agreed with the IMF have already been submitted to the European Commission. The EU, as the main donor of Ukraine, plans to cover a significant part of the amount with the frozen Russian assets.
Previously, only the income from these assets was mentioned.
According to the IMF, the increase in needs is related to the increase in Ukraine’s military budget and financial stability risks. A separate challenge remains the decline in US willingness to continue support, especially under Donald Trump’s administration.
President Volodymyr Zelenskyy will meet Trump on September 23 on the sidelines of the UN General Assembly in New York. Other bilateral talks on aid and support for Ukraine are also planned.