The International Monetary Fund (IMF) and Ukraine have reached a staff-level agreement, paving the way for talks on a full loan programme that would support Kyiv's economy and its bid to join the European Union. The agreement is subject to approval from IMF management.
According to Bloomberg News, the IMF is exploring a multiyear aid package for Ukraine worth as much as $16 billion to help cover the country’s needs and provide a catalyst for more international funding while Kyiv tries to repel Russian forces. On February 13, an IMF mission, led by Gavin Gray, began policy discussions with the Ukrainian authorities to prepare for the review of Program Monitoring with Board Involvement (PMB).
IMF Managing Director Kristalina Georgieva said, “Ukraine does need the IMF at this very critical time. Financial needs are significant: We put them somewhere between $40-48 billion for this year.” Governor of the National Bank of Ukraine Andriy Pyshnyy posted on Facebook, “The National Bank has a strong position, we have fulfilled all the obligations stipulated by the program. A successful revision of the Program Monitoring will be a bridge to the transition to a new program that will provide funding.”
Gavin Gray, IMF mission chief for Ukraine, said, “The authorities are making progress in reforms to strengthen governance, anti-corruption and rule of law, and lay the foundations for post-war growth, although the agenda of reforms in these areas remains significant.” He added, “A fully-fledged IMF programme would be supportive of the Ukrainian government’s efforts toward EU accession.”
Pyshnyy also said, “We are ready for reforms, we are ready to implement long-term plans, we have a sufficient expert resource, an internal foundation of responsibility for our work before the state, before the people of Ukraine.”
The agreement between IMF and Ukraine sets the stage for a full loan programme that could significantly help the Ukrainian government’s efforts toward EU accession. It comes at a crucial time for Ukraine, which is approaching the first anniversary of Russia's invasion. The IMF estimates that the country could require financial support in excess of $40 billion this year.
0. “Ukraine and IMF move forward towards expanded funding program” Yahoo News, 18 Feb. 2023, https://news.yahoo.com/ukraine-imf-move-forward-towards-053600026.html
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