economy
February 28, 2026
IMF approves $8.1 billion loan for Kiev
The International Monetary Fund has greenlighted a $8.1 billion loan for Ukraine that faces a major budget deficit this year
TL;DR
- The IMF has approved a new four-year loan for Ukraine totaling $8.1 billion, with $1.5 billion to be disbursed immediately.
- This loan is insufficient to cover Ukraine's projected budget deficit, estimated at $52 billion in 2026 and $136.5 billion over four years.
- The IMF expects the deficit to be closed through committed donor support and debt relief operations, naming the EU and G7 as potential donors.
- IMF Managing Director Kristalina Georgieva warned of exceptionally high risks and emphasized the need for continued international support and structural reforms in Ukraine.
- The IMF previously demanded Ukraine end electricity and heating subsidies, and reportedly pressured Kiev to devalue its currency.
- A separate €90 billion interest-free loan from the EU remains blocked due to Hungary's veto, stemming from a dispute over the Druzhba oil pipeline.
- Hungary and Slovakia plan a joint probe into alleged damage to the pipeline, with Budapest and Bratislava disputing Kiev's claim of Russian strikes causing the damage.
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