The International Monetary Fund (IMF) on Monday said it had approved an economic monitoring program for Ukraine that could help Kyiv secure funding from donors, with the country suffering This devastating war needs more than $40 billion this year.
The IMF said the monitoring program was “designed to help Ukraine maintain stability and promote donor funding amid very high balance of payments needs and exceptionally high risks”, following the crisis. Russian aggression, the IMF said in a statement.
The IMF said the Ukrainian authorities are committed to economic and financial reforms, particularly with regard to tax collection, the domestic debt market, transparency and the independence of the central bank.
They have four months to demonstrate their progress under Participatory Program Monitoring (PMB), the statement said.
Gavin Gray, head of the IMF’s mission to Ukraine, said the framework of measures overseen by the IMF is aimed at paving the way for financing, which can “come from many sources”.
Gray said Ukraine needs between $40 billion and $57 billion to cover budget and operational needs for 2023.
“Following the IMF’s recommendations will “give donors confidence to deliver resources,” he said.
The IMF’s First Deputy Managing Director Gita Gopinath said in a statement that Russia’s invasion “continues to have devastating economic and social impacts on Ukraine”, with growing civilian casualties and one third of the population had to be relocated.
“Despite all these tensions, the authorities have largely managed to maintain macroeconomic and financial stability, and they are committed to continuing to fine-tune policies for the future,” said Gopinath. adapted to rapidly changing circumstances, including in the event of a severe recession scenario.”
“Large and predictable external financial support will be critical to the success of the administration’s strategy and pre-disbursement will help resolve tensions by early 2023,” she said.
If Ukraine successfully complies with the surveillance program, it “will help pave the way for a program that can be fully supported by the IMF,” she said.
Gray stressed that it was “too early” to say how big the IMF program could be.
The IMF has provided $2.7 billion in emergency aid to Kiev since the start of Russia’s invasion of Ukraine in February.
The European Commission has just proposed 18 billion euros ($19 billion) in aid by 2023 in the form of loans.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
Featured video of the day
Khushi Kapoor And Orhan Awatramani Go To Dinner