The International Monetary Fund has published an updated Memorandum of Economic and Financial Policy following the third review of the EFF extended financing program from Ukraine. There are no new structural beacons, and the completion dates for the three existing ones have been delayed by several months. Interfax-Ukraine reports this.
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The introduction of a methodology for assessing supervisory risks to determine priorities for supervisory activities has been postponed for six months – until the end of December, and the development of policy in relation to state-owned enterprises, dividend policy and strategy privatization – for two months, until the end of October this year.
The active structural beacon regarding state-controlled banks has also been changed, and now it allows for the continuation of the work of the First Investment Bank (PINBank), which became the property of the state by decision of VAKS from the sanctioned Russian Evgeniy Giner and which the state-owned Ukrposhta would like to receive for development.
“All systemic banks with overwhelming state participation will be under the jurisdiction of the Ministry of Finance, and non-systemic banks that have passed into state ownership will not be recapitalized using fiscal resources and will be transferred to the Deposit Guarantee Fund for settlement in case of violation of prudential requirements,” it says. updated memorandum.
Nearest structural lighthouses
- The deadline for the adoption of a law on the rationalization of the consideration of cases by the High Anti-Corruption Court (HACC) with the possibility of such consideration by one judge instead of a panel of three judges has been postponed for a month – until the end of April. development by the end of March of a concept note on the “5-7-9%” program with proposals for refocusing on small and medium-sized enterprises by phasing out the participation of large companies, strengthening monitoring and ensuring adequate guarantees and adoption by the end of June of the law on rebooting the Bureau of Economic Security (EBB) with respect for the existing distinction between investigative powers and the powers of NABU. by the end of June, the volume of overdue debt must be determined and the financial condition of heat supply organizations (HSE) must be assessed by conducting a desk audit by a reputable audit company, in particular, by highlighting overdue debt before and after February 2022.
At the end of July, the deadlines for completing two more structural lighthouses will expire:
- preparation of an assessment of the effectiveness of tax incentives, including their cost to the budget, in order to develop a unified approach to reform, adoption of a law on the creation of a new court that will consider administrative cases against national government bodies (for example, NBU, NABU, NAPC) by judges who have been properly vetted professional competence and integrity.
How many lighthouses has Ukraine completed
According to the first deputy head of the Verkhovna Rada Committee on Tax and Customs Policy Yaroslav Zheleznyak, in total Ukraine has completed 21 of the 35 lighthouses that are recorded in the Memorandum.
How many lighthouses have Ukraine completed? p>
Recall
On March 31, 2023, the IMF Executive Board approved a new four-year Extended Fund Facility (EFF) program for Ukraine with financing of approximately $15.6 billion (SDR 11.6 billion). This program is part of the overall package of international support for Ukraine, which amounts to about $122 billion.
The IMF Executive Board completed the third review of the program under the Extended Fund Facility for Ukraine (EFF). In the near future, Ukraine will receive about $880 million.
The state budget of Ukraine has already received three tranches within the framework of the IMF EFF program with a total volume of about $4.5 billion. In 2024, the program provides for $5.4 billion in budget assistance to Ukraine.