09.09.202523:44:14UTC+00Ukraine Seeks New IMF Loan Program as War Costs Mount

Ukraine has officially sought a new financing arrangement from the International Monetary Fund, as ongoing conflict with Russia continues to exert pressure on its financial resources, Prime Minister Yulia Svyrydenko announced on Tuesday. Currently, approximately 60% of Ukraine's fiscal budget is allocated to its military expenditures, while assistance from Western allies remains crucial to support pensions, salaries for public sector employees, and address humanitarian demands. "Active military engagements are ongoing, and our projected state budget for 2026 has been developed with the recognition that the conflict is far from resolved," Svyrydenko stated on X. She confirmed having submitted the formal request during a meeting in Kyiv with Gavin Gray, the leader of the IMF's monitoring mission, and emphasized that further discussions will aim to secure a favorable outcome from the IMF Board of Directors by the close of this year. To date, Ukraine has obtained USD 10.6 billion as part of its existing USD 15.6 billion Extended Fund Facility. However, Svyrydenko did not disclose the specific sum Ukraine intends to seek under the prospective new arrangement.