IMF mission to Ukraine to begin work shortly, NBU head says

7 November 2022, 08:17 PM
Andriy Pyshnyi, Head of the NBU (Photo:NV)

Andriy Pyshnyi, Head of the NBU (Photo:NV)

The latest mission of the International Monetary Fund (IMF) to Ukraine will begin on Nov. 11, and is likely to work until Nov. 17, National Bank of Ukraine (NBU) Governor, Andriy Pyshnyy, said during a press briefing on Nov. 7.

“Final agreements will be formulated based on the results of the second mission, which will start its work on Nov. 11. We plan that it will last until Nov. 17,” Pyshnyy said.

According to the governor, technical discussions with Ukraine’s Finance Ministry will first establish the outline of the IMF program, which will form the basis of NBU's action plan for the coming years, and is likely to become the basis of IMF’s Extended Funding Facility, which Ukraine is counting on.

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Pyshnyy added that initial talks with the IMF took place in October, in Vienna, Austria. The NBU and IMF consolidated their positions on monetary and fiscal policy for Ukraine.

“Vienna hosted very substantive — and I would say, complicated — but very constructive discussions on the entire range of issues related to the macroeconomic situation, monetary policy, monetary relations, financial stability, fiscal consolidation of cooperation between the government and the NBU, and the need for more active cooperation in financing the needs of the Ukrainian budget and the domestic credit market," NBU head said.

Earlier, Pyshnyy said that the IMF monitoring program for Ukraine could be approved in the first half of December.

According to Finance Minister Sergii Marchenko, the government estimates the need to finance the state budget deficit in 2023 at $3-4 billion per month – compared to $5 billion per month in 2022, which Ukraine has not yet managed to raise.

The draft state budget of Ukraine for 2023, adopted by the country’s parliament in the first reading, provides for $38 billion in external deficit financing, including $15 billion from the IMF.

IMF Managing Director Kristalina Georgieva stated that until the approval of the program for Ukraine, the fund can extend support through its special drawdown account.

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