In Warsaw, from 17 to 22 February, negotiations were held between the Ministry of the International Monetary F) with representatives of Ukraine . The parties agreed to pay the staff for the third review of the expanded Extended Fund Facility (EFF), amounting to approximately 900 million dollars. It is a pleasure to confirm the Fund's commitment.
RBC-Ukraine reports this on the IMF website.
It is noted that the staff of the International Monetary Fund and the Ukrainian government have achieved staff-equivalent employment (SLA) with the updated package of economic and financial policies for the third revision of the 4-tier Extended Finance Program (EFF). The agreement may have been confirmed by the IMF's Supreme Council, which is expected to continue in the coming years.
All structural control indicators and all but one, as many performance criteria as possible have been reached, staff evaluates the program in such a way that it is finalized instantly. Here we go to the Vikonavcha Rada, which can help us see about 880 million US dollars (663.9 million special rights to reserve).
In 2023, the growth in the Ukrainian economy was guarded by the positive dynamics of high growth rates, lower inflation and a decrease in reserves, otherwise the prospects for 2024 would be rendered extremely insignificant due to the war.
“I am pleased to inform you that the IMF and Ukrainian authorities have achieved home ownership on par with the staff for the third review of the EFF programs. The satisfaction supports the confirmation of the IMF by the President's Council, which will be reflected in the coming years,” said the head of the IMF mission in Ukraine, Gavin Gray.
Priorities and heritage of Ukraine
The head of the National Bank of Ukraine, Andriy Pishny, noted on his Facebook that the IMF is recording Ukraine’s progress under the EFF program. All structural beacons and all, except one, certain efficiency criteria have been confirmed (it may be insignificant that the lower boundary of the feeder outlets is not touched through the blocking of cordons).
“Ukraine can be insured for the final tranche from the IMF I would like to reiterate that the SLA encourages praise With the pleasure of the new directors of the IMF (the meeting is planned in February). After this, Ukraine will be able to withdraw the fourth tranche from the Fund, amounting to approximately 880 million dollars,” said Pishny.
In his words, in the context of the effectiveness of the work of the NBU, the IMF officials noted the preservation of macroeconomic stability in the minds of the military, the stability and liquidity of the financial system, the stability of the foreign exchange market after the transition to the exchange rate regime.
The food also means that The NBU has instructed the NBU to continue promoting structural reforms to preserve macroeconomic stability, support development goals and closer accession to the EU.
I named the main priorities and objectives:
1. Increased visibility of the financial security system, the destruction of the financial market infrastructure, including the payment system, as well as the update of the regular assessment of stability and, if possible, the completion of an independent assessment of the strength of assets .
2. Progressive and important changes in currency exchange rates are consistent with the Strategy for the reduction of currency exchange rates, the transition to a greater exchange rate exchange rate and the rotation to inflation targeting. I’ll guess soon – there are no clear dates for the recording of these or other boundaries. This will only be available if necessary changes of mind arise.
3. Further mobilization of financing on the internal trade market. The nobles' quest to increase our autonomy to meet budgetary needs.
A full-scale war, which is worrying, is a key risk for the Ukrainian economy and financial system. Now we have had the opportunity to demonstrate the feasibility of taking action to advance in order to achieve our goals.
The IMF's mission through the EFF program
The same Extended Fund Facility (EFF) program for Ukraine with access to close to 1 5.6 billion US dollars (11.6 billion special rights reserved) was seized from the beginning of 2023 and part of the international package of support for Ukraine in the amount of 122 billion US dollars until the beginning of 2027.
The mechanism of expanded financing continues to serve as an anchor for economical programs in the face of extremely high insignificance. The program was high, when the outbreak of war began – Vlada Vikonna set all the criteria for efficiency, except for one thing – a slight failure to remove the tax gates through the blockade of the cordon – and all the structural guidelines that may be exchanged glances.
Two years after Russia's invasion of Ukraine, the human and economic legacies of the war would continue to grow. The remaining Operational Assessment of Volumes and Demands (ROAP-3) estimates consumption at a new level of 486 billion US dollars. Vlada is strongly supporting macroeconomic and financial stability, which, together with significant external financing, has made it possible to achieve stronger, lower economic renewal in 2023: The price is estimated at 5 points with the risk of expansion, due to a decrease in inflation and significant reserves. However, the war and the shutdowns from external finances have a negative impact on trust, and it is expected that growth in 2024 will increase to 3-4 hundredths.
Demands for fiscal finance will be even higher in 2024, which reflects pressure on the outputs associated with the war. The 2024 budget is likely to be deprived of a reliable short-term anchor for fiscal policy, and in this context, there may be a focus on securing sufficient revenues, which will prioritize the priorities of the government and local governments. bottom of the internal market. Vlada is ready to react quickly to shocks and has already taken steps to overcome the liquidity deficit, which is a sign of the beginning of fate through the blockages from external finances. It is important that the timely payment of the planned external support, which is projected to be 38 billion US dollars in 2024, is critical for financing the budget and supporting macroeconomic stability.
Preparations for the restructuring of the current commercial bank are underway, and it is important to complete them before mid-2024 according to program parameters. This, at the same time, from the side of creditors and donors of the official sector (due to the provision of government tax financing throughout the period of the program) and the average fiscal adjustments based on income (which is based on some The National Revenue Strategy (NRS) has long been introduced, which is of utmost importance for the renewal of the durability.
The foreign exchange market will lose its stable value after the transition to the exchange rate regime in 2023; In this case, the exchange rate can serve as a shock absorber and protect external stability. The relaxation of foreign exchange controls may be carried out in accordance with the NBU Strategy.
The financial system is deprived of stability and liquidity, although in view of the insignificance associated with the war, it is necessary to preserve profitability. The recent assessment of the stability of the National Bank of Ukraine and operational actions to cover the capital deficit have become positive steps for preserving stability. Among the priorities for May are increased visibility of the financial security system, the destruction of financial market infrastructure, including the payment system, as well as the renewal of regular assessment of stability and, if possible, the completion of independent analysis due to the cost of assets.
Vlada is deprived of a large-scale structural reforms to preserve macroeconomic stability, supporting the development and continuation of the path to accession to the EU.
The NSD may consolidate reforms of tax policy and administration to accommodate increased needs necessary to achieve these goals. It is necessary to avoid entries that have a negative impact on the income base.
The work will soon begin with the preparation of the budget declaration for 2025-27, which can satisfy the still significant needs of the budgetary authorities due to the need to rely more and more on internal resources. In addition, the implementation of mid-term budget planning, combined with reforms in the management of sovereign investments, will help to enhance the connections between national development goals, investment priorities and available resources.
Fiscal risks, located on the side of state enterprises, will require careful monitoring to ensure the effective use of state resources and conservation of government stability, in which the Ministry of Finance may act. Gratify the key role of the controller. It is necessary to monitor the subsidized lending program “5-7-9” in order to promote targeting with an eye to the sharing of budget resources and limit the risks of the financial sector. The recent implementation of the recently praised law on corporate governance is of utmost importance for the improvement of the sector of state-owned enterprises.
Recent reforms related to management, such as praise for the law on the reform of Special of the implemented Anti-Corruption Prosecutor's Office (APP) in 2023, With important achievements and boosting the momentum of reforms in this area, for example, the creation of a new administrative court, this is of utmost importance for increasing the trust of the population and donors to support renewal.
History of EFF programs for UkraineIMF Board of Directors 11 April 2023 praised another review of the EFF program with Ukraine and saw a tranche of 900 million dollars for the program for 2023-2027.
The Fund also published a memorandum to avenge the voluntary demands of the authorities of the region remove song songs.
Read more about the negotiations with the IMF in the RBC-Ukraine article “New tranche and plan “B” for the state budget. What should Ukraine expect from the negotiations with the IMF.”
Terms and important information about Read the war between Russia and Ukraine on the RBC-Ukraine channel on Telegram.
