Ukraine expects IMF deal approval within weeks

Ukraine expects formal approval of a new $8.2 billion IMF programme in coming weeks, its debt chief said, which would replace an existing $15.6 billion facility and support public spending amid the ongoing war.

Ukraine expects formal approval of a new $8.2 billion IMF programme within weeks, its debt management head Yuriy Butsa told Reuters while attending meetings in London. The programme is set to replace an existing $15.6 billion facility and is intended to help Kyiv maintain economic stability and public spending during the war with Russia. Officials said they have agreed on budget numbers for this year and next and will use existing commitments to cover short-term gaps. The government also plans gradual removal of wartime capital controls and measures to deepen its local bond market. Current status: - Yuriy Butsa said he expects IMF Board sign-off in a matter of weeks and that February was still possible for final approval. - The proposed programme amounts to $8.2 billion and would replace the current $15.6 billion IMF facility. - Officials report the programme underpins plans to address a projected near $140 billion budget shortfall over coming years. - Kyiv plans gradual easing of capital controls, work with Clearstream, and steps toward joining TARGET2 to make its bond market more accessible. Summary: The new IMF programme is presented as a step to preserve public spending and economic stability while the war continues. The next procedural step is formal IMF Board approval, which officials expect in the coming weeks; other policy moves include gradual capital control relief and measures to develop local currency funding and market infrastructure.