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According to the head of the NBU, Andriy Pyshnyi, implementing the IMF program will provide financial assistance of $15.6B and be critical for obtaining $115B in financing from partners over the next four years. He explained that the peculiarity of the current IMF program is not that it was adopted for the country in conditions of uncertainty (war) but because, in addition to Ukraine’s obligations, Ukraine’s partners have obligations as well. The second revision of the IMF program should be

Deputy head of the IMF mission in Ukraine, Natan Epstein, said that this year the IMF expects the Ukrainian economy to grow from 1.3% to 3%. He also positively assessed the NBU’s decision to switch to managed flexibility of the exchange rate because it meets the program’s requirements and is essential for economic stability. The head of the IMF mission in Ukraine, Gavin Gray, said that the evaluation of the extended financing program will be based on key measures that

According to Uma Ramakrishnan, Deputy Director of the European Department of the IMF, the IMF will continue interacting with the Ukrainian authorities in the coming weeks for the second review of the EFF’s extended financing program. “Our overall assessment is that the program continues to perform well,” she said. Ramakrishnan noted that several short-term priorities are being implemented, including the passage of the budget and some government measures. According to her, the resumption of the IMF’s permanent representation in Ukraine

On September 25, The IMF announced the start of technical discussions with Ukrainian authorities on the allocation of the third tranche through their credit program. “Discussions will cover the latest economic developments of fiscal and budgetary, financial and structural measures in the context of preparations for the 2023 consultations under Article IV of the IMF Agreement and for the second review of the extended financing program,” the IMF reported. Ukraine received the second tranche of $890M from the IMF at

A review of the EFF program is expected in October, said the head of the Ministry of Finance, Serhii Marchenko, at the EBA Global Outlook meeting. According to the minister, it is necessary to demonstrate the implementation of agreements within the program’s framework since the country’s critical dependence on external financing and the trust of donors remains. Marchenko clarified that if the second revision of the decision on allocating the third tranche under the EFF program is successful, the IMF

As of today, the Ministry of Finance does not foresee changes in the tax system anytime soon, and there is no need to talk about tax increases, Minister of Finance Serhiy Marchenko said at the EBA Global Outlook event. However, if the IMF starts discussions on the introduction of additional taxation, then banks will be taxed first. “Therefore, we have fears that if we have discussions with the IMF regarding additional taxation, it will be a sector that receives excess

The global economy has demonstrated resilience to a few negative shocks — pandemics, wars, climate events, and the cost-of-living crisis. The recovery from these shocks continues slowly and unevenly, IMF chief Kristalina Georgieva said. “Trillions of dollars in global production have been lost compared to pre-pandemic global trends,” she said. According to her, only the US has fully recovered among the largest economies. The Eurozone continues to lag by around 2%, while China and other developing and emerging market countries

This blueprint for developing the financial sector during the war envisages inflation at a level of less than 15% and possible deviations of the hryvnia to dollar cash rate from the official rate below 5%. These are the short-term indicators for implementing the strategy that were published on August 29. Indicators also include: Carrying out stability assessment, including AQR and stress testing of banks Insurance of military and political risks Introduction of a comprehensive recovery system, settlement of insolvency, and

The comments relate to certain aspects of the simplified taxation system based on the single tax in Ukraine. It creates opportunities for arbitrage between tax groups and lower taxes instead of the generally accepted goal of reducing the regulatory burden for small businesses, as detailed in the first review of the IMF’s Enhanced Financing Program (EFF) for Ukraine. “Attractive benefits in the form of low effective rates are provided to legal entities and professionals who would not have the right

These have been added to the updated memorandum, which Ukraine must fulfill to receive the third tranche of aid. Two of them must be completed by the end of September. In particular, the articles of the Budget Code on the restoration of medium-term budget planning, the development of a debt strategy, and the limitation of risks under state guarantees should become operational. In addition, Ukrainian authorities shifted the focus to supporting small and medium-sized businesses in the 5-7-9 soft loans

Real GDP growth in Ukraine as of May has already reached +2.4% compared to -29.1% at the end of last year, while inflation indicators have decreased and conditions on the foreign exchange market have improved. “The latest data analysis indicates more stable economic activity than at the time of approval of the EFF program,” the IMF noted. However, the destruction of the Kakhovka dam is an unforeseen risk, which “may affect GDP growth due to the loss of arable land,

In particular, the International Monetary Fund expects a decrease in grain exports from Ukraine due to poor harvests and mined fields. The volume of Ukrainian grain exports is predicted to decrease to 60% of the pre-war level by 2024. And possible interruptions with the grain initiative and import restrictions in the EU threaten to cause losses of up to $800M every month. Therefore, the IMF believes that the priority in the near term is to strengthen and diversify trade channels,

The IMF approved the decision to allocate another tranche to Ukraine within the framework of the extended financing program in the amount of $890 million. “The Executive Board of the IMF completed the first review of the agreement within the framework of the Enhanced Financing Program (EFF) for Ukraine, which enables the Ukrainian authorities to receive about $890M,” the message states. The funds are aimed at supporting Ukraine’s budget. “Despite the war, Ukraine’s economy is showing better resilience than expected

Ukraine and the IMF agreed at the staff level on the first revision of the four-year cooperation program, which paves the way for allocating the second $900M credit tranche, Prime Minister Denys Shmyhal said. The Board must still approve the agreement of the IMF’s Executive Directors. The IMF website says that Ukraine fulfilled all quantitative efficiency criteria at the end of April and structural beacons at the end of May. At the same time, they also pointed out significant challenges:

Ukraine should strengthen the mobilization of domestic revenues to finance social and infrastructure needs, according to the permanent representative of the IMF in Ukraine, Vahram Stepanyan. “For post-war Ukraine, this will be the main prerequisite for sustainable and long-term economic growth. Measures that reduce tax revenues or destroy the existing tax base limit Ukraine’s ability to achieve reconstruction and development goals, which negatively affects long-term economic growth,” he noted. According to Stepanyan, the new program with the IMF is designed

Ukraine is confident that the International Monetary Fund will help cover part of the state budget deficit this year. Around $5B is expected to be received, said Oleksiy Ustenko, a member of the Parliamentary Committee on Finance. According to him, Ukraine has the highest recorded budget deficit for all the years of its independence. To close it, €18B will be provided by the EU, $10B will come from the US and $5B is expected from the IMF, and the additional

 According to people familiar with the matter, as reported by Bloomberg, the International Monetary Fund is exploring a loan for Ukraine worth as much as $16B to help cover the country’s needs and provide a catalyst for more international funding. The program hinges on conditions including an endorsement from the G7 nations and Ukraine’s donors and creditors, to ensure the sustainability of the country’s debt, according to the sources. If approved, it would likely involve a disbursement of as much

Despite the global economy’s disappointing forecasts for 2023, it will still rebound from its lowest level and begin to grow moderately, said Kristalina Georgieva, managing director of the IMF. Speaking at the World Economic Forum, she recalled that during the Covid-19 crisis in 2021, global growth reached 6.1%. However, at the beginning of 2022, the pandemic unfolded with new force and its effects were exacerbated by Russia’s war against Ukraine. These factors combined to slow the world’s economy sharply, and

Based on macroeconomic parameters agreed upon with the IMF, the four-month monitoring program will outline the direction for the fiscal and monetary policies of the Government of Ukraine and the National Bank to maintain economic stability. The program is aimed at increasing tax revenues and revitalizing the domestic borrowing market, ensuring the financial sector’s long-term stability, curbing monetary financing, as well as improving public administration and transparency of state institutions, the Ministry of Finance reported. With the participation of the

The National Bank expects a full-fledged program of expanded IMF financing in 2023. This may happen following the first results from the monitoring program, the approval of which is expected at the end of the current year, said Deputy Chairman of the NBU Serhii Nikolaychuk. “The IMF monitoring program should lay the basis of our macroeconomic policy and the foundation for obtaining financing from other international partners. Also, this monitoring program should become a transitional bridge to a full-fledged program