“The ongoing IMF mission to Kyiv ends on November 18, with discussions expected to continue virtually after that”, said an IMF resident representative in Ukraine, Priscilla Toffano.
The International Monetary Fund began its latest assessment of its loan program with Ukraine, even as Kyiv delays passing tax legislation as the lender expects. The IMF considered a Ukrainian plan to raise taxes insufficient, proposing an increase in value-added tax, but this plan was criticized by many Ukrainian businesses.
According to a statement from Ukraine’s Finance Ministry published Monday, the Washington-based lender sent its staff to the Ukrainian capital for talks that may open a path for another $1.1B tranche under the four-year initiative. However, to approve the new loan, Ukraine must meet four “structural benchmarks,” including the assessment of risks to financial stability and a privatization strategy for state-owned companies.
Since the Kremlin’s full-scale invasion, the IMF has provided nearly $9.8B in loans to Kyiv. Including funds foreseen through the program but not yet disbursed, the sum will total more than $15B.