IMF greenlights Monitoring Program for Ukraine
The International Monetary Fund adopted the Monitoring Program for Ukraine (Photo:NBU website)
The IMF Executive Board has adopted the Monitoring Program with Board Involvement (PMB) for Ukraine, the press service of the National Bank of Ukraine reported on Dec. 19.
The Monitoring Program, based on the macroeconomic framework parameters agreed with the IMF, aims to assist Ukraine in maintaining macroeconomic and financial stability.
The program envisages a number of measures to strengthen the mobilization of state budget revenues, revive the domestic debt market, strengthen the financial sector, and increase the transparency and efficiency of governance in the sector of state-owned enterprises.
"Ukraine expects that the approval of the program will provide its partners with confidence and optimal conditions to ensure there is sufficient regularity (in the provision of) financial revenues, in the context of significant needs in the balance of payments and the state budget,” said the Ukrainian central bank governor, Andriy Pyshnyy.
“The NBU is ready to fulfill all its obligations under this program,” Pyshnyy said.
As part of the update of its financial sector strategy, the NBU together with IMF experts will develop a framework for assessing the quality of assets and conducting stress tests for banks, which is one of the structural beacons of the Monitoring Program for Ukraine.
A set of measures to curb monetary financing of the budget in 2023 is also envisaged.
The program has a four-month implementation period and does not directly provide financial assistance, but acts as a prerequisite for the transition to a new long-term IMF Extended Fund Facility.
In late November, Ukraine and the IMF reached a staff-level agreement on the monitoring program.
The agreement was reached following the last IMF virtual mission which worked from Nov. 11-22.
The program has yet to be approved by the IMF board.
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