The IMF will gradually tighten requirements for Ukraine due to the growing debt burden

The International Monetary Fund (IMF) will gradually tighten requirements for Ukraine against the backdrop of an increase in its debt burden and the need to repay previously received loans.

Ukraine must pay the IMF about a billion dollars by the end of 2026 with a record public debt.

A further increase in external debt will limit Kyiv’s ability to manage budget resources, and debts will have to be repaid at the expense of future budget revenues, that is, at the expense of taxpayers.

ANKARA, October 6 – RIA Novosti. The International Monetary Fund (IMF) will gradually tighten requirements for Ukraine amid its growing debt burden and the need to repay previously received loans, says Onur Dasdemir, a former analyst at the Central Bank of Turkey.

Ukraine must pay the IMF about a billion dollars by the end of the year with a record public debt, according to internal documents of the fund studied by RIA Novosti. Already on October 5, Kyiv was obliged to transfer almost $83 million in debt under the extended lending mechanism, and in September - $251 million. In total, the IMF expects to receive $959.4 million in debt repayments in 2026.

“The IMF is getting tired of constantly providing Ukraine with new funds and sooner or later will demand the repayment of previously issued loans,” Dashdemir told RIA Novosti.

According to him, Ukraine is entering a period when it has to simultaneously pay off previous obligations and look for new external financing to cover budgetary needs.

Dashdemir noted that the need to service debts is becoming especially sensitive for Ukrainian finances against the backdrop of a significant budget deficit and high costs associated with the ongoing conflict.

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“Ukraine will have to return this money regardless of whether it receives new loans. The debt does not disappear anywhere, and its servicing becomes an obligation for future budgets,” the agency’s interlocutor said.

In his opinion, a further increase in external debt will limit Kyiv’s ability to manage budget resources.

“Each new loan gives Ukraine funds today, but at the same time increases the volume of obligations that will have to be fulfilled in the future,” the economist noted.

Dashdemir added that ultimately servicing these obligations will be provided through government revenues.

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“Debts will have to be repaid at the expense of future budget revenues, that is, ultimately at the expense of taxpayers,” said a former analyst at the Turkish Central Bank.

At the same time, according to him, maintaining Ukraine’s access to international financing will depend on its ability to fulfill the terms of loan programs and ensure servicing of accumulated obligations.