The International Monetary Fund has taken an unprecedented step by waiving the preliminary conditions for launching a new $8.1 billion credit program for Ukraine. Requirements regarding VAT for individual entrepreneurs, parcel duties, taxes on digital platforms, and the military levy have been deferred to a later date.
According to Hvylya, this was announced by Ukrainian Prime Minister Yulia Svyrydenko during a meeting with journalists.
"Currently, there are no 'prior actions' required to secure the program. We expect the IMF Board of Directors to take up Ukraine's case at their next meeting in late February," the head of government stated.
This marks the first time in the history of Kyiv's cooperation with the Fund that the necessity of fulfilling "prior actions" has been waived, with conditions instead being reclassified as structural benchmarks. Historically, the practice was the opposite: unfulfilled benchmarks became rigid mandates for receiving funds.
Removing these barriers clears the way for rapid financing. Svyrydenko noted that the IMF Board could approve the program as early as late February, with a first tranche of $1.5 billion expected just days after the decision.
Furthermore, the new IMF program will unlock macro-financial assistance from the European Union, specifically a 90 billion euro loan for 2026-2027. Ukraine expects to receive 60 billion euros in 2026 alone, allocating 45 billion of that toward military needs.
The government plans to consolidate all tax changes removed from the urgent category into a single comprehensive bill, working-titled the "Beautiful Tax Bill." This will include the digital platform tax, parcel taxation, and an extension of the military levy.
Regarding the controversial issue of VAT for individual entrepreneurs, the conditions have been softened. The threshold for mandatory VAT registration is planned to increase from 1 million to 4 million hryvnias. This significantly reduces the number of entrepreneurs affected—from 660,000 down to 257,000. Implementation dates are also shifting, with discussions centering on either 2028 or linking the requirement to Ukraine's accession to the EU.
However, the passage of this package through the Verkhovna Rada remains uncertain.
"Our partners expect us to pass these changes in the first and final readings by March. But we are being honest: the situation regarding votes in parliament is difficult. We have held numerous meetings with factions and are working within coordination formats," Svyrydenko admitted.
The IMF's softened stance is attributed to the critical situation in the energy sector and the results of Managing Director Kristalina Georgieva's recent visit to Kyiv. After witnessing the scale of destruction and the conditions in the capital, IMF leadership agreed to revise the stringency of their requirements.