G7 expects IMF to play more active role in providing financial assistance to Ukraine

The G7 countries expect more active involvement from the International Monetary Fund (IMF) in 2023 regarding the issue of financial support for Ukraine. But it is still too early to talk about the scope of the new program and its conditions.

Source: Serhii Marchenko, the Minister of Finance of Ukraine, in an interview with RBK Ukraine news agency

Details: "Of course, the division of responsibility is a key issue that is currently on the agenda. Just before the interview with you, I had the last meeting this year of the G7 finance ministers and the management of the IMF and the World Bank. The key message coming from our partners is that they want different involvement from the IMF," the minister said.

"You say that the US would like the EU to be more involved. And here I understand why the European decision-making system is more complicated than, for example, the American one. The agreement of 27 countries is needed, and the mechanics are different there.

Now there is a signal that the IMF should help Ukraine next year. This comes from each country of the G7 and from the leadership of these countries. As one of the key shareholders, they see the role of the IMF in this," he added.

Marchenko also stated that all efforts and attention are now focused on the implementation of the IMF's Program Monitoring. 

"We see the role of the EU in the next year: €18 billion, and we know that the US plans to provide US$9.9 billion for nine months. There is an understanding regarding other smaller countries and what exactly they can provide. And now they are asking about the role of the IMF in this process, and here the pressure is quite high on the management of the Fund. We, in turn, are ready for any development of events," Marchenko summarised.

Background:

The management of the International Monetary Fund approved the Program Monitoring with Board Involvement for Ukraine. It will last four months and become a prerequisite for the new IMF financing program.

The Program Monitoring with Board Involvement (PMB) for Ukraine, which was finally approved by the IMF on December 19, could become a major program with financing if it passes in March 2023. 

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