IMF Begins Review of $15.5 Billion Aid Program to Ukraine as Country Faces Economic and Budget Challenges

KYIV, May 20, 2025 — The International Monetary Fund launched a new review Tuesday of its $15.5 billion Extended Fund Facility program for Ukraine, with talks expected to center on the country’s war-damaged economy and pressing budget requirements.

The review marks the eighth assessment of the four-year financial arrangement designed to support Ukraine amid ongoing conflict with Russia.

Central Bank Governor Andriy Pyshnyi said the discussions would be constructive and substantive, emphasizing the program’s role in strengthening Ukraine’s resilience during challenging times.

More than three years of war have severely damaged Ukraine’s economy. Millions have fled, infrastructure lies in ruins, and supply chains remain disrupted. The country’s gross domestic product plunged nearly 30% in the first year of fighting and, while still below pre-war levels, showed modest growth in 2023 and 2024.

Andriy said officials would focus on financing Ukraine’s budget needs and maintaining debt sustainability through a combination of international support and increased domestic revenue collection.

Though Ukraine’s budget needs for 2025 are currently secured by partner aid, officials expressed growing uncertainty over continued international economic assistance beyond this year.

Most domestic revenues are allocated to defense spending, while Western financial aid funds humanitarian and social programs. The budget deficit for 2025 is projected at about $38 billion.

The review will also address the financial sector, with discussions on reforms to strengthen stability, including tighter regulation of credit bureaus and the development of financial market infrastructure, according to Andriy.

We look forward to constructive and substantive discussions. We are starting from good positions.