The International Monetary Fund has expressed serious concern regarding the delay in the adoption of important reforms in the Verkhovna Rada, which could jeopardize the implementation of the extended funding program for Ukraine. Due to prolonged procedural disputes in parliament, it is difficult to ensure the adoption of key decisions necessary for further cooperation with international creditors.
This is reported by Finway
Dialogue with the IMF and Blocking of EU Financial Aid
On March 18, an IMF mission led by Gavin Gray plans to begin consultations with Ukrainian lawmakers. The main goal of the negotiations is to discuss ways to accelerate the implementation of reforms and ensure compliance with Ukraine’s international financial obligations. An additional risk to the country’s financial stability is posed by the delay in receiving €90 billion in aid from the European Union, which is still being blocked by certain member states, including Hungary and Slovakia, despite assurances from the European Commission about the inevitability of the fund transfer.
What Reforms Should the Verkhovna Rada Adopt
Throughout March, the Ukrainian parliament is expected to approve a number of key legislative changes, including:
- the introduction of a value-added tax (VAT) for individual entrepreneurs operating under a simplified taxation system;
- the abolition of the duty-free threshold for international postal shipments;
- regulation of taxation on income earned from digital platforms.
“However, even basic decisions are often not gaining the necessary number of votes, let alone politically sensitive tax initiatives or the ratification of international agreements.”
These changes are critically important for meeting the requirements of international partners; however, their adoption is currently complicated by internal political disputes and a lack of support among lawmakers.
Possible Consequences for the Country’s Economy
If external funding continues to be delayed, the National Bank of Ukraine may be forced to resort again to direct lending to the Ministry of Finance, as occurred in the first year of the full-scale war. Such a scenario poses risks to macro-financial stability, which could negatively affect tax revenue and the growth rate of the digital economy.
Ukraine is in the process of implementing a new four-year program under the IMF’s Extended Fund Facility (EFF). The first tranche of $1.5 billion was already credited to the state budget on March 3, 2026.