Ukraine and International Monetary Fund staff have reached an agreement that moves the nation nearer a full-fledged loan.
(Bloomberg) — Ukraine and International Monetary Fund staff have reached an agreement that moves the nation nearer a full-fledged loan.
Ukrainian authorities had a strong performance meeting the targets contained in the nation’s four-month, non-cash program with the fund, Gavin Gray, the IMF mission chief for Ukraine, said in a statement.
“The authorities are making progress in reforms to strengthen governance, anti-corruption and rule of law, and lay the foundations for post-war growth, although the agenda of reforms in these areas remains significant,” Gray said.
Those included taking measures to boost tax revenue, significantly reduce the central bank’s support of its war-battered budget and further improving corporate governance at state-run companies.
“A fully fledged IMF program would be supportive of the Ukrainian government’s efforts toward EU accession,” Gray said.
The staff assessment still requires IMF management approval.
Bloomberg News reported last month that the IMF is exploring a multiyear aid package for Ukraine worth as much as $16 billion to help cover the country’s needs and provide a catalyst for more international funding while Kyiv tries to repel Russian forces.
Whether that loan gets negotiated hinges on a range of conditions, including endorsement from Group of Seven nations, and Ukraine’s donors and creditors ensuring the sustainability of the country’s debt, according to people familiar with discussions.
The plan would also require changes to IMF lending rules so the fund could lend to the war-torn country, and the government in Kyiv would need to commit to a series of policies, the people said.
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