Approval of the Cooperation Project With the IMF

by Roman Cheplyk
Monday, March 27, 2023
Approval of the Cooperation Project With the IMF

On March 24, Ukraine adopted a draft memorandum on participation in EFF's $5.6 bln program

The cabinet of ministers of Ukraine approved the draft Letter of intentions of the government of Ukraine and the National Bank of Ukraine to the IMF and the draft Memorandum on economic and financial policy. Previously, on March 21, the IMF approved a 4-year EFF project for ≈$15.6 billion. Currently, Ukraine is not included in the project, but the 2nd stage of the project is aimed at European integration and may include the Ukrainian issue in the future. Final information on Ukraine's participation in the EFF program is expected to appear by March 30.

On March 23, a meeting of the Paris Club, the IMF and the World Bank took place regarding the extension of the standstill to cover Ukraine's debt obligations until 2027. In turn, the Ministry of finance of Ukraine reported that it is currently working towards restoring the debt sustainability of Ukraine's budget, maintaining liquidity and creating adequate conditions for the participation of private investments in Ukraine's recovery.

"The Ukrainian authorities will consider several alternative scenarios for the implementation of the necessary debt repayment regime in order to maximise the efficiency and success of the process, keeping in mind the goal of restoring Ukraine's access to the market as soon as possible. The Ukrainian government has hired financial and legal consultants to support this process," Ministry of finance.

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