Ukraine 2026 Budget Includes $45 Billion Deficit

Ukraine plans to use a €90 billion EU loan to address national needs, including social and energy sectors. If €45 billion from this tranche arrives alongside IMF and Ukraine Facility funds, the country's $50 billion deficit for the year will be covered. The source noted that the distribution of these funds is intended to ensure stability in critical sectors. The discussion clarified that the proposed funding is a loan rather than a grant. Mechanisms are being developed for the disbursement of the loan, which will likely be tied to elements of the Ukraine Facility or other structural documents requiring specific actions by the Ukrainian government. There is a possibility that up to 10 percent of the funds could be lost if not managed according to these conditions. The country has been recording record fiscal deficits in recent years due to the ongoing war. The IMF previously projected a 2% GDP growth for Ukraine this year, which is a decrease from the previous 4.5% forecast.