An International Monetary Fund (IMF) mission arrived in Kyiv to begin the first review of Ukraine’s $8.1 billion Extended Fund Facility (EFF) program.
IMF approval serves as a key signal of creditworthiness for other donors and lenders supporting Ukraine.
The mission, led by Gavin Gray, is holding talks with Ukrainian authorities on macroeconomic policies and structural reforms, the IMF said on Wednesday.
A successful review would unlock a $685.5 million tranche expected in early June.
Reform progress mixed
Ukraine has yet to fully meet key reform targets set for March, particularly a package of tax measures for 2026–2027.
Parliament has failed to pass several required bills, raising the risk that the next tranche could be delayed.
On the eve of the mission, the Verkhovna Rada did not approve amendments introducing value-added tax (VAT) on imported parcels valued under €150 ($176).
At the same time, lawmakers approved an extension of the military levy. A bill aligning with EU reporting standards for digital platforms passed its first reading but still requires revisions.
A proposal to introduce VAT for sole proprietors earning above Hr.4 million ($90,900) annually has not been submitted to parliament following opposition from business groups and lawmakers.
Following this, the IMF signaled openness to discussing alternative revenue measures ahead of the 2027 budget.
Lawmakers told Kyiv Post they lacked a clear list of bills tied to Ukraine’s international commitments or what they entail.
Speaking on the sidelines of the Spring Meetings in April, IMF European Department Director Alfred Kammer said the fund acts as a technical advisor and does not intervene in domestic political processes.
“When it comes to program implementation, sometimes this is tough and you encounter a rough patch, but you need to overcome that,” Kammer said. “It is not for the IMF to organize parliament.”
“That is a deeply democratic experience where the government and parliament need to get together,” he added.
Further obligations ahead
By the end of June, Ukraine is required to introduce additional tax code changes aligned with OECD standards, approve an updated strategy for state-owned banks, and strengthen oversight of financial sector risks.
Further reforms include new rules on asset declarations for senior officials and preparation of an analysis of energy sector finances by the end of July.
IMF officials say implementation challenges are common but must be addressed to maintain support.
The outcome of the review will determine whether Ukraine receives the next tranche and continues to secure funding from international partners.