IMF approves new four-month assistance program for Ukraine: details

The monitoring program, with the involvement of the Fund's Board for Ukraine, which will last four months and become a prerequisite for the new IMF financing program, was approved by the leadership of the International Monetary Fund.

Rubryka reports, referring to the press service of the National Bank of Ukraine (NBU).

The press service said that the program includes several measures for:

• strengthening the mobilization of state budget revenues,
• revitalization of the domestic debt market,
• strengthening the financial sector,
• increasing the transparency and efficiency of management in the sector of state-owned enterprises.

"Given the existence of a macroeconomic framework confirmed by the IMF, Ukraine expects that the approval of the program will be able to provide our partners with confidence and optimal conditions for ensuring a sufficient rhythm of financial inflows in conditions of significant needs in the balance of payments and the state budget,"  the NBU chief Andrii Pyshnyi.

The head of the financial institution emphasized that the National Bank of Ukraine is ready to fulfill all the commitments under the program.

The National Bank reminded that on Monday, December 19, the Board of Executive Directors of the IMF discussed the Monitoring Program approved by the IMF management with the involvement of the Board of the Fund for Ukraine.

It is based on macroeconomic framework parameters agreed upon with the IMF and is aimed at helping Ukraine to maintain macroeconomic and financial stability.

As part of the renewal of the financial sector strategy, the NBU, together with IMF experts, will develop the principles of assessing the quality of assets and conducting stress tests for banks.

This is one of the structural beacons of the Monitoring Program for Ukraine. The program envisages measures to curb emission financing of the following year's budget.

The program will last four months and will not provide direct financial assistance, but it is a necessary prerequisite for the transition to the new long-term program of extended financing of the IMF.

Reference

As Rubryka reported, on Friday, November 11, the IMF Mission held online discussions with representatives of Ukraine regarding the new lending program.

The IMF Mission to Ukraine also held work in Vienna on Monday, October 17, and lasted until October 20.

Following the work results, the Mission announced productive discussions and continued work on the monitoring program with the participation of the Board of directors' involvement.