The International Monetary Fund said on Monday it has approved a four-month program for Ukraine aimed at maintaining economic stability following Russia’s invasion of the country, and helping promote donor financing.
It said the so-called Program Monitoring with Board involvement (PMB) was approved by the IMF’s management on Dec. 9 and discussed by its executive board on Monday, adding that it will help Ukraine implement prudent policies and “catalyze” external financing.
“Large and predictable external financial support will be critical for the success of the authorities’ strategy, and frontloaded disbursements would help address strains in early 2023,” IMF First Deputy Managing Director Gita Gopinath said in a statement.
Gavin Gray, the IMF’s mission chief for Ukraine, said the IMF estimates the country will need between $40 billion and $57 billion in external financing in 2023.
The IMF will not make any loans itself but hopes the PMB will help boost confidence among donor nations to support Ukraine.
As part of the program, Ukraine has committed to taking measures to strengthen its tax revenues, revive the domestic debt market, and make financial sector reforms.
“At the same time, the PMB seeks to promote transparency and preserve hard-won gains from past Fund-supported programs, including in the areas of independence of the National Bank of Ukraine and, more broadly, governance and anti-corruption,” Gopinath said.
“Strong implementation of the PMB should help pave the way toward a possible full-fledged IMF-supported program.”
By Reuters
