The Finance Minister of UkraineSerhiy Marchenko, welcomed today the technical agreement reached with the International Monetary Fund (IMF) to access a fund of 15,600 million dollars over four years.
The program will “significant support for the Ukrainian economy and financial system and will help mobilize additional financial resources from international partners, necessary for success in our fight against the aggressor”Marchenko said in a statement.
The technical agreement, which was announced yesterday by the IMF’s head of mission for Ukraine, Gavin Grey, still needs to be ratified by the IMF’s Executive Board, something that is expected to happen in the coming weeks.
In exchange for financial aid, the Ukrainian government agrees to implement a series of measures to stabilize the country’s economy and financial system, hit hard by the war caused by the Russian invasion.
Thus, the statement explains, in a first phase of between 12 and 18 months, Kiev should strengthen fiscal, financial, external and price stability through the mobilization of State revenue and avoid monetary financing, focusing on the contrary in financing through national debt markets.
In addition, according to the note, it will promote long-term financial stability, among other measures by preparing an in-depth assessment of the state of the banking sector and promoting the independence of the Central Bank of Ukraine (NBU).
The second phase includes reforms designed to promote the country’s reconstruction, to support Ukraine’s accession process to the European Union (EU), and to accelerate long-term growth.
In this period, Ukraine is expected to return to the policies that were implemented before the start of the Russian invasion, including maintaining a flexible interest rate and measures to combat inflation.
In addition, it will have to implement structural reforms “significant” of fiscal policy to stabilize state revenues, initiate a public finance management process, and reform public investment management to contribute to the reconstruction process.
The communiqué concludes by stating that in order to support the reforms in the post-war period it will also be necessary to improve competition in the energy sector.
Source: EFE
Source: Gestion
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