IMF approves program for Ukraine to help boost donor funding
© Reuters. FILE PHOTO: Local residents gather near a residential building as a vital electrical infrastructure burns down following a Russian drone strike, amid Russia’s attack on Ukraine, in Kyiv , Ukraine December 19, 2022. REUTERS / Gleb Garanich
WASHINGTON (Reuters) – The International Monetary Fund said on Monday it had approved a four-month program for Ukraine to maintain economic stability in the wake of Russia’s invasion of the country, and help boost funding. of sponsors.
It said the so-called Participatory Monitoring Board (PMB) Program was approved by the IMF’s management on December 9 and discussed by the organization’s executive board on Monday. , adding that the program will help Ukraine implement prudential policies and “catalyze” external financing.
“Large and predictable external financial support will be critical to the success of the administration’s strategy, and pre-disbursements should help resolve tensions by early 2023,” said Deputy Director General of the Department of Finance. IMF first managing director Gita Gopinath said in a statement.
Gavin Gray, the head of the IMF’s mission to Ukraine, said the IMF estimates the country will need between $40 billion and $57 billion in external funding by 2023.
The IMF will not make any loans on its own but hopes the PMB will help strengthen trust among donor countries to support Ukraine.
As part of the programme, Ukraine has committed to taking measures to increase tax collection, restore the domestic debt market and carry out financial sector reforms.
“At the same time, PMB seeks to promote transparency and maintain hard-won benefits from previously Fund-supported programs, including in the independent areas of the National Bank of Ukraine and, more broadly, in the areas of the National Bank of Ukraine. governance and anti-corruption,” said Gopinath.
“The robust implementation of the PMB will help pave the way for a fully IMF-supported program.”