The IMF requires the expansion of the tax base for Ukraine’s new financing program
The International Monetary Fund will only consider a new program for Ukraine after fulfilling a set of measures, including the adoption of the 2026 budget and the expansion of the tax base.
The IMF’s Director of the Communications Department, Julie Kozack, stated that the Executive Board of the Fund will not commence discussions on a new program for Ukraine without fulfilling all set conditions. One of the key requirements is the adoption of the state budget for 2026, which will include an expanded tax base aimed at revenues from online operations.
Among other conditions are the elimination of customs loopholes for consumer goods imports and the cancellation of VAT payer registration benefits. Additionally, countermeasures against the informal economy are envisaged, including strengthening competition in public procurement and eliminating regulatory shortcomings in the Labor Code.
Furthermore, to obtain financing guarantees, it is necessary to ensure substantial financing volumes and guarantees from international donors. In the context of GDP warrant restructuring, Kozack noted that the IMF would consider any proposals taking into account debt sustainability and financial guarantees for Ukraine.
Recall that negotiations on the extended financing program for 2026-2029 have already taken place between Prime Minister Julia Svyrydenko and the IMF mission led by Gavin Gray.
| Condition | Details |
|---|---|
| Budget-2026 | Must be adopted with an expanded tax base |
| Strengthening competition | In public procurement and improvement of the Labor Code |
| Financial guarantees | Obtained from international donors |
| GDP warrant restructuring | Evaluation in the context of debt sustainability |
