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Ukraine's Ministry of Finance publishes Memorandum of Economic and Financial Policies with IMF
KYIV. April 5 (Interfax-Ukraine) – The Memorandum of Economic and Financial Policies under the four-year Extended Fund Facility (EFF) Program for $15.6 billion with the International Monetary Fund (IMF), together with a Letter of Intent signed by the president, prime minister, heads of the Ministry of Finance and the National Bank, was published on Tuesday evening by the Ministry of Finance on its website.
“The goal of our IMF-supported program is to restore fiscal and debt sustainability as well as medium-term external viability, while also promoting long-term growth in the context of post-war reconstruction and our process of accession to the European Union,” the letter of intent reads.
According to the Ministry of Finance, the documents contain measures and conditions that the government and the National Bank of Ukraine have implemented and plan to implement and comply with during the program period in 2023-2027, as well as specific steps necessary to successfully pass its revisions and receive the next tranches. They were approved by the IMF Board of Directors on March 31, 2023.
According to the document, the program will comprise a two-phased approach. . In the first phase, our primary objective is to preserve macroeconomic and financial stability within the context of the ongoing war while preparing the ground for a strong post-war recovery, including structural reforms in the fiscal area, financial sector, monetary and exchange rate policies, governance, anti-corruption, and the energy sector.
There are 19 structural benchmarks – the most important performance criteria for the period until the end of June 2024, more than half of which are in the fiscal area and almost a quarter – in the area of improving governance and combating corruption.
In the post-war second phase, Ukraine will deepen our structural reform agenda and implement additional macroeconomic policy reforms to restore medium-term external viability, support reconstruction and promote strong long-term growth, and accelerate our progress toward EU accession.
The planned schedule of the program envisages the provision after the already received first tranche of $ 2.7 billion, three tranches of SDR 664 million ($893 million) in mid-June and October of this year and at the end of February of the next one based on the results of the first, second and third revisions for a period of the end of April, June and December this year respectively.
