Ukraine unveils full text of memorandum on cooperation with IMF

5 April, 11:46 AM
The Memorandum on Economic and Financial Policy with the IMF has been published (Photo:Yuri Gripas / Reuters)

The Memorandum on Economic and Financial Policy with the IMF has been published (Photo:Yuri Gripas / Reuters)

For the first time, the Ministry of Finance of Ukraine has published the full text of a memorandum on economic and financial policy with the IMF, along with a Letter of Intent signed by the president, prime minister, finance minister, and the head of the National Bank of Ukraine.

The documents contain the measures and conditions that the Cabinet of Ministers and the National Bank of Ukraine have implemented and plan to implement and adhere to during the period of the program from 2023-2027, as well as specific steps necessary for the successful completion of its reviews and receiving subsequent tranches, the Ukrainian government says. They were approved by the IMF Board of Directors on March 31, 2023.

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The program provides for a two-stage approach. In the first stage, planned for 2023-24, the main goal is to maintain macroeconomic and financial stability in the context of the ongoing war, while preparing the groundwork for a powerful post-war recovery, including through structural reforms in the budget and tax sphere, financial sector, monetary and exchange rate policy, corporate governance, anti-corruption efforts, and energy sector reforms.

Nineteen structural benchmarks, the most important criteria for the program's implementation until the end of June 2024, are envisaged, with more than half relating to the fiscal sphere and almost a quarter relating to governance and anti-corruption improvements.

The second stage of the EFF program will focus on reforms that will help support post-war reconstruction and maximize efficiency, as well as assist Ukraine in implementing necessary measures on the path towards European integration. Long-term economic growth is also a priority of the second stage of the EFF program.

The program schedule provides for Ukraine to receive three tranches of SDR 664 million ($893 million) each, in the middle of June and October 2023, and at the end of February 2024, after the first, second, and third reviews by the end of April, June, and December 2023, respectively.

The text of the memorandum can be read here.

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