The International Monetary Fund said its executive board approved a four-year $15.6bn (€14.35bn) loan programme for Ukraine, part of a global $115bn (€105bn) package to support the country's economy as it battles Russia's 13-month-old invasion.
The decision clears the way for an immediate disbursement of about $2.7bn to Kyiv, and requires Ukraine to carry out ambitious reforms, especially in the energy sector, the fund said in a statement.
The Extended Fund Facility (EFF) loan is the first major conventional financing programme approved by the IMF for a country involved in a large-scale war.
Ukraine's previous, $5 billion long-term IMF programme was cancelled in March 2022 when the fund provided $1.4bn in emergency financing with few conditions. It provided another $1.3bn under a "food shock window" programme last October.
An IMF official said the new $115bn package includes the IMF loan, $80bn in pledges for grants and concessional loans from multilateral institutions and other countries, and $20 billion worth of debt relief commitments.
Ukraine must meet certain conditions over the next two years, including steps to boost tax revenue, maintain exchange rate stability, preserve central bank independence and strengthen anti-corruption efforts.
Deeper reforms will be required in the second phase of the programme to enhance stability and early post-war reconstruction, returning to pre-war fiscal and monetary policy frameworks, boosting competitiveness and addressing energy sector vulnerabilities, the IMF said.
A senior US Treasury official said the programme was "really solid" and included commitments from Ukrainian authorities to achieve 19 structural benchmarks over the next year alone.
IMF First Deputy Managing Director Gita Gopinath said the programme faced "exceptionally high" risks, and its success depended on the size, composition and timing of external financing to help close fiscal and external financing gaps and restore Ukraine's debt sustainability.
