There is an agreement between the IMF and Ukraine. Giant support for Kyiv

The International Monetary Fund (IMF) has announced that it has reached a working agreement with representatives of the Ukrainian authorities on a four-year Extended Financing Program (EFF). It provides funding for Ukraine in the amount of 15.6 billion US dollars.

Agreement between Ukraine and the IMF. What does he suggest?

The FFF is designed to help raise funds from Ukraine’s international partners, support macro-financial stability, and pave the way for recovery from Ukraine’s victory in the war with Russia.

This is the first agreement the IMF will sign with a country at war. The program must now be approved by the Fund’s board of directors, which is expected to happen in the coming weeks.

According to Rzeczpospolit, the FFF consists of two stages. The first stage (12-18 months) based on the activities of the monitoring program provides for the strengthening of fiscal, external, price and financial stability. This requires boosting revenues, avoiding central bank funding, and increasing funding from domestic debt markets.

The second phase includes reforms aimed at recovery and reconstruction, measures to support Ukraine’s accession to the European Union and improve financial stability and accelerate long-term growth. At this stage, Ukraine is expected to return to Russia’s pre-war policies, including a flexible exchange rate and inflation targeting.

The International Monetary Fund began work on a new program for Ukraine in October last year, and two months later approved a four-month program. On February 13 of this year, the IMF Mission began preparations for the revision of the monitoring program in Ukraine, and on March 8, negotiations began with representatives of the Ukrainian authorities on the program.