The International Monetary Fund (IMF) has announced that its Executive Board will review a proposed new loan agreement worth $8.1 billion for Ukraine in the coming days. If this program is greenlit, it will replace the previous $15.5 billion arrangement. This new financial support is crucial for maintaining Ukraine's economic stability and funding public expenditures as the country faces the persistent challenges of Russia's full-scale invasion, which has now entered its fifth year.

IMF spokesperson Julie Kozack highlighted that Ukraine has fulfilled the necessary prerequisites for consideration, such as submitting a draft labour code law and adopting the state budget. Despite these advances, Kozack noted that Ukraine's economic growth is expected to remain under 2% in 2025, reflecting the slow pace of recovery due to ongoing conflicts and increased government spending. The prolonged war continues to exert significant pressure on both the population and the economy.

The approval of this loan agreement is essential for Ukraine, as it aims to bolster financial resources necessary for recovery and reconstruction efforts following the devastating effects of the war. As the international community closely monitors the situation, the IMF's cooperation will play a vital role in ensuring that Ukraine can navigate its economic challenges effectively while addressing the humanitarian consequences of the ongoing conflict with Russia.