The International Monetary Fund (IMF) and Ukraine reached an agreement on Friday to review a loan programme, unlocking approximately $400 million in essential funds, more than three years after Russia’s invasion.
The deal was announced during Ukrainian President Volodymyr Zelensky’s visit to Washington to meet with US President Donald Trump.
The trip was overshadowed by an intense verbal confrontation between the two leaders in the Oval Office, which left the future of efforts to end the war in Ukraine uncertain.
The IMF reported that its staff recently completed a nine-day visit to Ukraine and were satisfied with the reforms the country has implemented under a four-year loan programme, valued at around $15.5 billion.
“This programme continues to provide a strong anchor for the authorities’ economic agenda during times of exceptionally high uncertainty,” said Gavin Gray, IMF mission chief for Ukraine, in a statement released on Friday, February 28, 2025.
He noted that the programme’s performance remains strong and that Ukraine has met all quantitative performance criteria up to mid-December.
The IMF’s board is expected to review the agreement in the coming weeks, with approval anticipated to release the $400 million in funds. This would bring the total amount disbursed to Ukraine under the programme to over $10 billion.
Gray praised Ukraine’s economic resilience despite the challenges posed by the ongoing war but cautioned that growth is expected to slow this year due to labour constraints, damage to energy infrastructure, and the continued conflict with Russia.
The IMF also highlighted concerns about Ukraine’s inflation rate, which reached 12.9 per cent in January, driven primarily by rising food and labour costs. Gray supported the recent rate hikes by Ukraine’s National Bank, warning that further action would be necessary if inflation worsens.
