“The program is expected to catalyze large-scale external support to overcome Ukraine’s financial deficits”, — write: www.radiosvoboda.org
“The agreement covers a range of fiscal and monetary policies to anchor the program, the objectives of which include maintaining macroeconomic stability, restoring debt sustainability and external viability, fighting corruption and improving governance,” the statement said.
The program is expected to catalyze large-scale external support to overcome Ukraine’s financial deficits.
“Under the baseline scenario, the total fiscal deficit is estimated at approximately US$136.5 billion for 2026-29. In 2026-27, Ukraine will face a residual financial deficit (taking into account existing financial obligations) in the amount of about 63 billion US dollars,” the fund added.
According to the IMF, in addition to implementing a debt restructuring strategy to restore its sustainability, the authorities have pledged to accelerate efforts to prevent tax evasion and expand the tax base, in particular by taxing income received through digital platforms, eliminating customs loopholes for the import of consumer goods, and canceling VAT registration benefits.
“Agreement was also reached on measures to combat the informal economy, in particular by increasing competition in the field of public procurement and eliminating loopholes in the current labor code,” the foundation noted.
Prime Minister Yulia Svyridenko noted that this program will help finance critical expenses, but the agreement still needs to be approved by the IMF’s Board of Executive Directors.
“The total volume of the program is 8.2 billion dollars for 4 years. This program will help to finance critical expenditures, maintain macro-financial stability and attract additional external support, which is critically important for us in the coming years. The arrangement still needs to be approved by the Board of Executive Directors of the IMF,” she wrote in a telegram.
International Monetary Fund (IMF) mission led by Gavin Gray held negotiations with the Ukrainian authorities during November 17-21 in response to their request for a new Enhanced Financing Agreement (EFF).
Ukraine turned to the International Monetary Fund with a request for a new financing programsaid Prime Minister Yuliya Svyridenko after a meeting with mission of the IMF at the beginning of September.
According to the Ministry of Finance, as of February 2022, Ukraine received more than $145 billion in international financial aid, which made it possible to maintain macro-financial stability in the face of a full-scale war and guarantee all necessary social expenditures.
