--- title: "IMF Names Two Key Conditions for Allocating $1.65 Billion in Tranches to Ukraine" description: "IMF European Department Director Mateusz Szczurek stated at a meeting in Bangkok that resuming reforms and securing partner guarantees are key conditions for allocating $1.65 billion in tranches to Ukraine by the end of 2026." date: 2026-10-16T14:00:07.837Z lang: en url: https://xab.info/en/posts/imf-names-conditions-for-ukraine-tranches-165-bln tags: [imf, ukraine, eff-program, budget-2027, international-financing, bangkok-summit] author: "Andrey Kosynko" publisher: "XAB.info" --- # IMF Names Two Key Conditions for Allocating $1.65 Billion in Tranches to Ukraine ![IMF European Department Director Mateusz Szczurek in a formal suit against a neutral background](https://xab.info/media/2026/10/16/mvf-nazval-usloviya-dlya-vydeleniya-ukraine-transhej-na-165-mlrd/mvf-nazval-usloviya-dlya-vydeleniya-ukraine-transhej-na-165-mlrd-1.webp) ## Key Points - The IMF named two conditions for approving the combined 2nd and 3rd EFF reviews: resumption of reforms and financing guarantees from partners - The combined third and fourth tranches will amount to approximately $1.65 billion - Ukraine's 2027 budget is based on a prolonged conflict scenario, increasing financing needs - The IMF mission for the second review is expected in November 2026 At the Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok, IMF European Department Director Mateusz Szczurek outlined two fundamental conditions upon which the approval of the combined second and third reviews of the Extended Fund Facility (EFF) program for Ukraine depends. According to him, these are the resumption of domestic reforms and the provision of financing guarantees by international partners. Both factors, in the official's assessment, are a necessary but not sufficient condition for the successful completion of the review by the end of 2026. ### Reforms and Guarantees: What the Fund Demands Szczurek emphasized that the adoption of laws and other regulatory measures in priority economic areas is critically important for attracting additional funding from donors starting in 2026. He did not disclose the full list of specific sectors, but indicated that without visible progress in legislative work and institutional transformations, further disbursement of funds will be difficult. The second condition insisted upon by the IMF European Department is financial guarantees from Kyiv's Western partners — formalized co-financing commitments that reduce risks for the Fund and increase the predictability of external financing for Ukraine. ### Budget 2027: The Prolonged Conflict Scenario Of particular note is Szczurek's commentary on the Ukrainian government's draft state budget for 2027, which has already been submitted to parliament. The document, he said, is based on the assumption that the armed conflict will last longer than initially expected. «This, of course, increases the financing need for 2027», stated the European Department Director. Thus, the IMF has effectively recorded that the baseline macroeconomic scenario of the program is being revised upward in terms of fiscal needs, which will be taken into account when calculating the amounts of future tranches. ### EFF Program Architecture and Current Payout Status The $8.1 billion EFF program was approved by the IMF in late February 2026 and is part of Ukraine's broader external financing package for 2026–2029 totaling $136.5 billion under the baseline scenario. In July of this year, the Fund completed the first review and disbursed a second tranche of about $690 million, bringing the total funding received under the new program to $2.2 billion. The Fund now faces the task of conducting a combined second and third review, following which Ukraine will have access to the combined third and fourth tranches totaling approximately $1.65 billion. ### Chronology: What Has Been Done and What Lies Ahead The IMF mission for the second review of the program, as reported earlier, began on August 31, 2026. The focus was on the state of the economy, the progress of reforms, and the parameters of the 2027 budget. According to available data, a full-scale mission to complete the second review is expected in November of this year. Thus, the Ukrainian side has a limited window — from the completion of the mission's talks until the end of the year — to fulfill all the conditions formulated by Szczurek at the Bangkok meetings. The Ukrainian delegation, as part of the Annual Meetings held from October 12 to 18, is holding substantive discussions with the Fund regarding the implementation of the EFF program. ### Context: Why This Matters for Macroeconomic Stability For Ukraine, whose state budget under ongoing conflict conditions is critically dependent on external financing, the timely receipt of IMF tranches is important not only for covering the deficit, but also for maintaining the confidence of other donors. As Szczurek pointed out, the adoption of specific legislative measures and the presence of partner guarantees create the basis for attracting additional funds from 2026 onward. In conditions where the baseline scenario assumes a total external financing volume of $136.5 billion over four years, each IMF tranche acts as an «anchor» around which the commitments of other creditors and grantors are built. Disrupting review timelines or failing to meet conditions could trigger a chain reaction of payment schedule revisions by all participants in the donor coalition. ## Fact-Check & Sources - [Реформы и гарантии партнеров: МВФ назвал условия двух новых траншей для Украины](https://www.rbc.ua/ukr/news/reformi-i-garantiyi-partneriv-mvf-nazvav-1792158270.html) - Statement by M. Szczurek at the IMF Annual Meetings in Bangkok. Confirmed: program volume $8.1 billion, second tranche ~$690 million, total received volume $2.2 billion, combined tranches ~$1.65 billion, mission dates, 2027 budget parameters. ## FAQ ### What two conditions did the IMF name for allocating new tranches to Ukraine? According to IMF European Department Director Mateusz Szczurek, these are the resumption of reforms in Ukraine and the provision of financing guarantees by international partners. ### What amount of funding will Ukraine receive from the combined third and fourth tranches? The total amount of the combined third and fourth tranches is approximately $1.65 billion. ### When is the IMF mission for the second program review expected? The IMF mission for the second review of the EFF program is expected in November 2026. The mission's talks with Ukraine began on August 31, 2026. ### What scenario is Ukraine's 2027 draft budget based on? The state budget draft for 2027 submitted to parliament is based on the assumption that the armed conflict will last longer than expected, increasing financing needs.