IMF decision on new $8 bln program expected in Jan – Rada Committee head on meeting with Fund mission

The decision of the International Monetary Fund (IMF) Board of Directors on launching a new EFF program requested by Ukraine is expected in January, and then, in case of a positive result, the first disbursement will be made, said Roksolana Pidlasa, head of the Verkhovna Rada Budget Committee.

"The total amount of the program that the IMF is offering Ukraine is about $8 billion over four years. This is less than we expected or need, but a program with the IMF is key to obtaining financing from other partners, including a reparations loan," Pidlasa wrote on Facebook after a meeting with the Fund's mission, which began discussions on the new program in Kyiv on Monday.

According to Pidlasa, the parties discussed the details of the 2026 state budget, the adoption of which, within the agreed-upon deficit, is a prior action that must be completed before the program begins.

Regarding structural benchmarks, Pidlasa noted that the IMF is most interested in increasing state budget revenues, particularly by closing tax evasion schemes.

Danylo Hetmantsev, the head of the committee on finance, taxation, and customs policy also reported on the meeting with the IMF mission.

"This was probably the most difficult meeting ever. It was even more difficult than in 2022. Our big problem is the loss of trust among our partners in connection with the latest corruption scandals. Our partners are openly discussing these scandals," Hetmantsev commented.

He believes that there is currently an opportunity to rebuild trust by swiftly and decisively removing "managers" who have proven to be ineffective.

"No one will cover our huge financing needs in the coming years [I will not speculate on the numbers]. In order to receive support, we will also have to carry out real but necessary reforms and make very difficult decisions," emphasized the head of the committee.