Washington, Nov 10 (EFE).- The International Monetary Fund (IMF) and Ukraine on Friday reached a staff-level agreement on economic and financial policies for the second review of a $15.6 billion loan that will allow the disbursement of $900 million in aid after approval by the global lender’s executive board.
Spain’s First Vice President and Acting Economy Minister Nadia Calvino (R), and IMF Managing Director Kristalina Georgieva (C) speak with Ukrainian Finance Minister Serhiy Marchenko (2-R) at the start of the Fourth Ministerial Roundtable Discussion for Support to Ukraine on the third day of the 2023 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Marrakesh, Morocco, 11 October 2023. EFE-EPA FILE/JALAL MORCHIDI
The Fund’s staff reached an agreement with the Ukrainian government following days-long discussions in Poland.
The agreement must now be approved by the IMF Executive Board in Washington.
“All quantitative performance criteria for end-June and indicative targets for end-September were met. The majority of structural benchmarks were also met,” the IMF said in a statement.
This aid is part of the Expanded Fund Facility (EFF) Arrangement, a four-year $15.6 billion package approved in March.
The organization said that the good results of the second review that Ukraine has gone through reflected “the authorities’ continuing commitment to the overall reform agenda” required for the disbursement of the aid.
“The war in Ukraine continues to have a devastating impact on the population and the economy as attacks on critical infrastructure and air strikes continue countrywide. Furthermore, Russia’s termination of the Black Sea Grain Initiative and destruction of ports have impeded Ukraine’s export,” Gavin Gray, leader of the IMF delegation that met with the Ukrainian authorities, said.
“Despite this, macroeconomic and financial stability have been maintained, thanks to prudent policymaking as well as steady and timely external support. The Ukrainian economy continues to show remarkable resilience and further signs of stabilization as recent economic developments point to a stronger-than-expected economic recovery in 2023,” he added.
Gray stressed that “steadfast implementation of structural reforms, including in governance, anti-corruption and public investment management, will be crucial in laying the foundations for strong and sustained growth.” EFE