The International Monetary Fund (IMF) Executive Board has completed the Seventh Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about $0.4 billion, which will be allocated for budget support.
This will bring the total disbursements under the IMF-supported program to $10.1 billion.
Ukraine’s IMF-supported program helps anchor policies that sustain fiscal, external, and macro-financial stability at a time of exceptionally high uncertainty. The EFF aims to support Ukraine’s economic recovery, enhance governance, and strengthen institutions with the aim of promoting long-term growth in the context of reconstruction and Ukraine’s path to EU accession, said IMF in statement.
“Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine. In spite of this, macroeconomic stability is being preserved through skillful policymaking as well as substantial external support. The economy has remained resilient, but the recent growth slowdown is expected to persist in 2025 due to headwinds from energy needs and a tight labor market. Contingency planning is key to enable appropriate policy action should risks materialize," - Ms. Kristalina Georgieva, Managing Director of the IMF, following the Executive Board discussion on Ukraine.
The National Bank of Ukraine (NBU) has tightened monetary policy to respond to the rise in inflation, which remains mainly driven by food prices, while inflation expectations remain well anchored. Reserves remain adequate, sustained by continued sizeable external support. Overall, the outlook remains subject to exceptionally high uncertainty, the statement reads.
According to IMF statement, Ukraine’s performance under the program remains strong. The program remains fully funded, with a total external financing package of $148.8 billion under the baseline scenario and $162.9 billion in the downside scenario over the four-year period. This includes the full utilization of approximately $50 billion from the G7’s Extraordinary Revenue Acceleration (ERA) Loans for Ukraine initiative.
IMF Executive Board welcomed the enactment of the tobacco excise tax law as a positive step to reinforce the authorities' commitment to implementing the National Revenue Strategy. To meet high-priority spending needs, the strategy’s accelerated implementation is considered as essential, including modernizing tax and customs services, reducing tax evasion, and aligning legislation with EU standards. Additionally, strengthening public investment management, improving medium-term budget planning, and enhancing fiscal risk management will contribute to sustainable growth, investment, and fiscal stability.
"While the financial sector remains stable, continued vigilance is necessary due to heightened risks. Addressing institutional weaknesses in the securities market regulator is crucial. Looking ahead, strengthening Ukraine’s capital markets infrastructure will be a key step in attracting foreign investment for reconstruction," - IMF stated and recommended to continue anti-corruption and governance reforms, including appointing a new head for the Economic Security Bureau, completing the audit of the National Anti-Corruption Bureau and amending the criminal procedure code.
Ship traffic through the Bab el-Mandeb Strait fell to its lowest level in months on Sunday after Yemen's Houthi movement attacked Saudi oil facilities...
The chief executive of a Turkish defence company has said the United States has approved the export of GE F110 engines for Türkiye’s KAAN fighter j...
Russian President Vladimir Putin has signed laws introducing stricter financial requirements for foreign workers, as Moscow continues to tighten migra...
Russian authorities said 11 people, including four children, had been killed by Ukraine in an overnight attack on a holiday camp, accusing Kyiv on Saturday of deliberately targeting civilians.
Iran will halt its own attacks as long as the United States maintains its pause on strikes, but Tehran remains sceptical of U.S. intentions, a senior Iranian source told on Sunday.
Ship traffic through the Bab el-Mandeb Strait fell to its lowest level in months on Sunday after Yemen's Houthi movement attacked Saudi oil facilities along the Red Sea coast, while vessel movements through the Strait of Hormuz also remained subdued despite a pause in U.S.-Iran tensions.
Kazakhstan's President Kassym-Jomart Tokayev called on Saturday for Russia and Ukraine to freeze the conflict and return to peace talks, saying a negotiated settlement remained possible despite the entrenched positions of both sides.
Marvel Studios used its return to San Diego Comic-Con to reveal several major projects, including a new Ghost Rider film starring Ryan Gosling and the long-awaited Black Panther 3.
Oil prices have fallen more than six per cent as a pause in U.S.-Iran hostilities eased fears of wider supply disruption around the Gulf.
Paramount Skydance agreed to pause its acquisition of Warner Bros Discovery until after a ruling on a challenge by states to the deal, plunging the $110 billion deal into further uncertainty.
China's Foreign Ministry has said it is closely monitoring the United Kingdom's nationalisation of British Steel. Prior to the British government fully taking over the loss-making company on Thursday, it was previously owned by Chinese private steelmaker Jingye.
Apple is closing in on Nvidia's position as the world's most valuable publicly traded company, as investors increasingly bet the iPhone maker can turn artificial intelligence into sustained earnings growth.
AI-powered shopping assistant Phia has been accused of using "cookie stuffing" to claim affiliate commissions for purchases it did not generate, according to a Bloomberg investigation. The company says the issue has now been resolved.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment