WASHINGTON (Reuters) – The IMF said on Monday it had approved an economic surveillance program for Ukraine that could help Kyiv secure donor funding, with the war-torn country needing more than $40 billion. This year.
The monitoring program “is designed to help Ukraine maintain stability and catalyze donor funding in a context of very large balance of payments needs and exceptionally high risks”, following the Russian invasion, the International Monetary Fund said in a statement.
Ukrainian authorities have embarked on economic and financial reforms, including tax collection, the domestic debt market, central bank transparency and independence, the IMF said.
They have four months to prove their progress in accordance with the monitoring program of the program with participation of the board of directors (PMB), according to the press release.
The framework of measures followed by the IMF aims to pave the way for financing, which can “come from many sources”, said Gavin GreyIMF Mission Chief for Ukraine.
Ukraine needed $40 billion to $57 billion to cover its budgetary and operational needs for 2023, Gray said.
Following IMF recommendations “would give donors the confidence to provide resources”, he said.
Russia’s invasion “continues to have a devastating social and economic impact on Ukraine”, with growing civilian casualties and a third of the population displaced, the IMF’s first deputy managing director said. Gita Gopinath said in a statement.
“Despite all these tensions, the authorities have largely succeeded in maintaining macroeconomic and financial stability, and they are determined to continue to adapt their policies to rapidly changing circumstances, including in the event of a severe downside scenario. “, said Gopinath.
“Significant and predictable external financial support will be critical to the success of the authorities’ strategy, and early disbursements would help address tensions in early 2023,” she said.
If Ukraine successfully follows the surveillance program, it “should help pave the way for an eventual full-fledged IMF-backed program,” she said.
Gray stressed that it was “too premature” to say how big the IMF program might be.
The IMF has provided $2.7 billion in emergency aid to Kyiv since the Russian invasion of Ukraine began in February.
The European Commission has just proposed aid of 18 billion euros (19 billion dollars) in 2023 in the form of loans.
The monitoring program “is designed to help Ukraine maintain stability and catalyze donor funding in a context of very large balance of payments needs and exceptionally high risks”, following the Russian invasion, the International Monetary Fund said in a statement.
Ukrainian authorities have embarked on economic and financial reforms, including tax collection, the domestic debt market, central bank transparency and independence, the IMF said.
They have four months to prove their progress in accordance with the monitoring program of the program with participation of the board of directors (PMB), according to the press release.
The framework of measures followed by the IMF aims to pave the way for financing, which can “come from many sources”, said Gavin GreyIMF Mission Chief for Ukraine.
Ukraine needed $40 billion to $57 billion to cover its budgetary and operational needs for 2023, Gray said.
Following IMF recommendations “would give donors the confidence to provide resources”, he said.
Russia’s invasion “continues to have a devastating social and economic impact on Ukraine”, with growing civilian casualties and a third of the population displaced, the IMF’s first deputy managing director said. Gita Gopinath said in a statement.
“Despite all these tensions, the authorities have largely succeeded in maintaining macroeconomic and financial stability, and they are determined to continue to adapt their policies to rapidly changing circumstances, including in the event of a severe downside scenario. “, said Gopinath.
“Significant and predictable external financial support will be critical to the success of the authorities’ strategy, and early disbursements would help address tensions in early 2023,” she said.
If Ukraine successfully follows the surveillance program, it “should help pave the way for an eventual full-fledged IMF-backed program,” she said.
Gray stressed that it was “too premature” to say how big the IMF program might be.
The IMF has provided $2.7 billion in emergency aid to Kyiv since the Russian invasion of Ukraine began in February.
The European Commission has just proposed aid of 18 billion euros (19 billion dollars) in 2023 in the form of loans.
