IMF mission approves over US$1 billion disbursement to Ukraine, setting some conditions

The International Monetary Fund (IMF) mission has agreed to allocate US$1.1 billion in funding to Ukraine. Among the subsequent conditions are tax reforms, work with Ukrenergo [the Ukrainian state-owned electricity transmission system operator] and an audit of the National Bank of Ukraine (NBU).

Source: IMF’s press service

Details: The mission representatives, who have been working in Kyiv since 4 September, have finalised a positive review of the four-year programme for funding Ukraine and approved the allocation of the next tranche of US$1.1 billion.

"[Ukraine's] Performance under the programme has remained strong despite the war, with all quantitative performance criteria for end-June met, as well as the structural benchmark due for this review," said Gavin Gray, Head of the IMF mission to Ukraine.

The IMF has not set specific requirements regarding tax increases in Ukraine. The mission head noted that Ukrainian authorities need to take measures to close existing loopholes for tax evasion and combat the shadow economy in line with the National Revenue Strategy (NRS).

"Legislation to reform the Customs code should confirm the central role of the Finance Ministry in overseeing customs, while robust processes should be established for selecting a permanent head of customs as well as other key leadership roles," Gray emphasised.

Gray also highlighted short-term priorities, including the establishment of a new High Administrative Court, the reform of the Accounting Chamber of Ukraine and conducting the first external audit of the NBU.

The re-establishment of an independent supervisory board at Ukrenergo should be completed by the end of December.

Background: The International Monetary Fund (IMF) mission began discussions with the Ukrainian authorities on 4 September to review the US$1.1 billion Extended Fund Facility (EFF) programme.

Support UP or become our patron!