The International Monetary Fund (IMF) has announced that a mission will arrive in Ukraine in the coming weeks to evaluate the country’s progress on economic reforms as part of an ongoing $8.1 billion loan program. This visit aims to assess Ukraine’s adherence to its commitments regarding fiscal policies and internal resource mobilization.
According to IMF representative Julie Kozak, the mission will focus on key areas, including tax policy and the mobilization of domestic financial resources. She emphasized the necessity for Ukraine to engage more actively in utilizing its internal resources to meet significant financial needs, especially in light of the external support received since the onset of the full-scale Russian invasion in 2022.
Kozak highlighted the importance of expanding the tax base and addressing the informal economy, which is estimated to constitute approximately 45% of Ukraine’s GDP. This issue is critical for strengthening the country’s financial stability and reducing reliance on external assistance.
The IMF reminded that as part of the loan program, Ukraine is committed to implementing comprehensive reforms. These reforms are aligned with the country’s aspirations for European Union membership and the attraction of international financial support.
The current IMF program, approved in February, is set for review in June, at which point the organization will evaluate how well Kyiv has met its objectives. This review will play a crucial role in determining the future of financial assistance to Ukraine.
However, the IMF noted that Ukraine faces challenges in advancing several legislative initiatives aimed at broadening the tax base. Among these are proposals to impose value-added tax (VAT) on low-cost imports from abroad and to regulate the taxation of self-employed individuals.
Kozak added that discussions around tax reforms are ongoing, but specific details regarding potential adjustments to the terms of the loan program have not been disclosed.
The IMF plans to send a mission to Ukraine to evaluate the country's economic reforms under an $8.1 billion loan program. Key areas of focus will include tax policy and mobilization of internal resources, as Ukraine seeks to address its financial needs amid ongoing external support.