The IMF mission completed its work and approved a positive conclusion for Ukraine

The mission of the International Monetary Fund, which evaluated the situation in Ukraine and its fulfillment of conditions, ended in Warsaw. According to the results, Ukraine and the IMF reached an agreement at the staff level to revise the monitoring program.

The press service of the IMF writes about this.

This will pave the way for Ukraine to start discussing a full-fledged long-term IMF program. The results of the agreements have yet to be approved by the IMF Board of Directors.

The head of the mission, Gavin Gray, said that the Ukrainian authorities fulfilled all conditions by the end of December, as well as all five structural benchmarks by the end of January. It is about:

• submission by the government to the parliament of a package of tax laws aimed at increasing revenues;
• taking measures by the Ministry of Finance to eliminate debt;
• development of a conceptual note for the social protection system;
• establishment of the Supervisory Board of Naftogaz;
• coordination of key elements of diagnostics of the banking sector.

According to the IMF, in 2022 the Ukrainian economy shrank by 30%, less than previously expected, and inflation began to slow down. The economy is gradually adjusting, and a slight economic recovery is expected during the year.

“Timely provision of significant external support was critical for macroeconomic stability. Large-scale disbursements will remain important in 2023 and beyond to meet financing needs and contribute to stability,” Gray noted.

He emphasized that a full-fledged IMF program would support the Ukrainian governmentʼs efforts to join the EU. In particular, reform initiatives to improve business productivity and competitiveness need to be promoted to help lay the foundations for strong post-war growth amid progress towards EU accession.

• On February 13, the mission of the International Monetary Fund, headed by Gavin Gray,began work in Ukraine to prepare for the review of the monitoring program.
• Since the beginning of the great war, the stand-by program, under which Ukraine and the IMF used to cooperate, has been stopped. In March, the Fund approved $1.4 billion in emergency funding for Ukraine to help meet immediate spending needs and mitigate the effects of the war. On October 8, the IMF Executive Board allocated about $1.3 billion in additional emergency financing to Ukraine within the Rapid Financing Instrument. The International Monetary Fund is considering a multi-year aid package for Ukraine worth $16 billion.