Ukrainian PM says new IMF program necessary if war prolongs – Bloomberg

Ukraine’s new Prime Minister Yulia Svyrydenko said she will likely seek additional funding from the International Monetary Fund, as global donors have so far allocated only half of the approximately $75 billion needed for the country’s military budget over the next two years, Bloomberg reported in a report following an interview with the Ukrainian prime minister.

If the scenario is that the war will continue this year and for some time into next year, then we will most likely be faced with a new IMF program, Svyrydenko said.

As reported, the Extended Fund Facility (EFF) with the IMF, opened in March 2023, worth about $16 billion, expires in the first quarter of 2027, and its next ninth review is scheduled for the end of this year, although it was initially planned for August-September.

The prime minister told Bloomberg that economic and military scenarios would be on the agenda of negotiations with the IMF during the August visit, to determine whether a new program would be appropriate and what its likely parameters might be.

Svyrydenko also emphasized that she plans to talk remotely in the coming days with Secretary of the US Department of Treasury Scott Bessent, with whom she worked intensively on the minerals agreement, to discuss potential financial assistance. The new Cabinet also seeks to cooperate with the US on the purchase of weapons, in particular Patriot air defense systems, and the joint production of drones. According to the prime minister, this may include the construction of factories in the United States for the production of unmanned aerial vehicles.

In an interview, the prime minister also promised to resolve all outstanding issues by the end of the year, including anti-corruption measures, within the framework of the current program with the IMF and the Ukraine Facility - a financial assistance program of the European Union.

To be very frank, within Ukrainian society and certain social groups this is somehow being hyped up and highlighted, and partners are looking at and evaluating Ukraine based on other results, Svyrydenko noted and once again confirmed that she considers the government's refusal to appoint the candidate proposed by foreign members of the competition commission as director of the Economic Security Bureau to be legitimate.