The Ukrainian government, in collaboration with the International Monetary Fund (IMF), has revised its conditions on a new $8.2 billion lending program, easing sensitive tax increases, Prime Minister Yulia Svyrydenko announced on Saturday. This move is pivotal for unlocking further international support, notably a 90-billion-euro EU loan.
As Ukraine’s war with Russia stretches into its fifth year, Western financial aid remains a lifeline, ensuring the country’s defenses and economy remain operational. Recent negotiations resulted in a simplification of agreements originally solidified in November, with adjustments to structural benchmarks, as stated by Svyrydenko.
The IMF’s approval of the four-year program hinges on key actions, including a tax raise for individual entrepreneurs. Intensified Russian airstrikes have further deteriorated Ukraine’s economy, leading the central bank to adjust its GDP growth forecast for 2026 to 1.8%. Lawmakers are also considering additional tax changes.
(With inputs from agencies.)