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Within the framework of the Extended Fund Facility for Ukraine (EFF) from the International Monetary Fund, Ukraine has already completed 28 structural benchmarks.
That’s according to the Ministry of Finance, Ukrinform reports.
“Overall, Ukraine has already met 28 structural benchmarks, including 19 in the fiscal area, under the EFF,” the statement reads.
It is noted that by the fifth review of the EFF program, Ukraine completed five benchmarks, including two completed ahead of schedule.
Within the framework of the EFF, the government has developed a methodology for assessing the effectiveness of tax benefits, adopted a new law on the Bureau of Economic Security; identified the main public companies that were severely affected by the war, and prepared an analysis of potential fiscal and quasi-fiscal costs.
Changes to the Customs Code were adopted ahead of schedule and a plan was approved to ensure a clear linkages between medium-term budget forecasts and capital expenditures with an appropriate schedule for its implementation.
“The EFF program is the most effective for Ukraine in terms of the number of successful reviews. This demonstrates Ukraine’s ability and readiness to implement reform measures even in the face of a full-scale war. Once again, I would like to emphasize that cooperation with the IMF is an integral part of maintaining fiscal and monetary stability and stimulating economic recovery. IMF staff support along with the mobilization of external financing continue to be stabilizing factors for our financial system,” said Minister of Finance of Ukraine Sergii Marchenko.
The Ministry of Finance also emphasized that for the first time in the entire history of cooperation, Ukraine successfully passed five reviews of the IMF program.
As reported, the International Monetary Fund decided to allocate another $1.1 billion tranche o to Ukraine under the EFF.
At the end of March 2023, the IMF approved a 48-month EFF agreement for Ukraine with total access to $15.5 billion. The program became part of the $151.4 billion support package for Ukraine. The agreement between the IMF and Ukraine helps to anchor policies that support fiscal, external, and macro-financial stability at a time of extremely high uncertainty.
In addition, the EFF aims to support economic recovery, improve governance, and strengthen institutions to promote long-term growth in the context of Ukraine’s reconstruction and path to the European Union.
With the latest tranche from the IMF, the total volume of payments under the EFF program for Ukraine reaches $8.7 billion.