Ukraine and IMF move forward towards expanded funding program

18 February, 07:36 AM
IMF (Photo:REUTERS/Johannes P. Christo)

IMF (Photo:REUTERS/Johannes P. Christo)

The International Monetary Fund mission and the Ukrainian government have agreed to review the exiting monitoring program with the involvement of the fund’s Board of Directors, IMF press service reported on Feb. 17.

The IMF mission, led by Gavin Gray in Warsaw, assessed how Ukraine fulfills its obligations under the monitoring program.

“The IMF staff and the Ukrainian authorities have reached staff-level agreement on the review of the Program Monitoring with Board Involvement (PMB),” says the report. “Completion of the first and final review, which is subject to approval by IMF Management, paves the way to initiate discussions on a fully-fledged IMF-supported program.”

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Head of the National Bank of Ukraine, Andriy Pyshnyy, clarified on Facebook that the decision of the IMF mission means a "record-breaking fast" transition to the next stage – the discussion of an expanded program for Ukraine, which provides for financing.

“The results of the fund's mission noted the high efficiency of the monitoring program implementation,” said Pyshnyy.

“The representatives of the Fund also noted the work of the National Bank. This applies to the measures taken to ensure financial stability and respond to current challenges, in particular – liquidity surplus in the banking system.”

The IMF representative praised Ukraine's fulfillment of obligations under the monitoring program and said that as of the end of December 2022, “quantitative and indicative targets have been met, as have all five end-January structural benchmarks.” The IMF expects a gradual economic recovery of Ukraine in 2023.

According to Bloomberg, the IMF may agree on a new loan program for a period of three to four years before the end of March. The program will be designed for $14-16 billion, of which Ukraine can receive $5-7 billion in the first year.

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