November 22, 2021
Washington D.C: The Executive Board of the International Monetary Fund (IMF) completed today the first review of Ukraine’s economic performance under the 18-month Stand-By Arrangement (SBA) that was approved on June 9, 2020. The completion of the review allows the authorities to draw the equivalent of about US$699 million (SDR 500 million), bringing total disbursements under the current SBA to about US$2.8 billion (SDR 2 billion).
The Board also approved an extension of the Stand-By Arrangement to end-June 2022 and a rephasing of program disbursements as well as the Ukrainian authorities’ request for a waiver for non-observance of the December 2020 performance criterion on government-guaranteed debt in light of the corrective actions already taken.
Ukraine’s IMF-supported economic program aims to help the authorities address the effects of the COVID-19 shock, sustain the economic recovery, and move ahead on important structural reforms to reduce key vulnerabilities.
In particular, under the agreed policy priorities the Ukrainian authorities are committed to (i) returning fiscal policies to settings consistent with medium-term debt sustainability while protecting the socially vulnerable, strengthening revenue administration, and reducing fiscal risks from quasi-fiscal operations, including in the energy sector; (ii) safeguarding central bank independence and focusing monetary policy on returning inflation to its target; (iii) ensuring banks’ financial health, including through good governance, with the goal of reviving sound bank lending to the private sector; (iv) tackling corruption and pushing forward with the implementation of judicial reform; and (v) reducing the role of the state and vested interests in the economy to improve the business environment, attract investment and raise the economy’s potential.
IMF Executive Board chairperson statement to follow.