For Ukraine, the reduction in commissions is about 38-39%, which is greater than in other countries.
On October 11, the International Monetary Fund decided to reduce the level of commissions for developing countries, especially for Ukraine, which will allow our state to save up to $700 million over five years. This was announced by the Deputy Executive Director of the IMF, representative of Ukraine Vladislav Rashkovan on Monday, October 14.
The solution includes reducing fees such as charges, surcharges and commitment fees that affect the total amount of resources received. Cutting fees by an average of 36% would reduce the IMF’s annual income by $1.2 billion.
Thanks to this decision, Ukraine’s annual costs for using IMF resources will decrease by $130 million, and over the next five years total savings are expected to be $650-700 million.
For Ukraine, the reduction in commissions is about 38-39%, which is greater than in other countries.
As Rashkovan noted, this decision was “the result of difficult negotiations,” since the IMF is an organization that works on the basis of consensus. During the discussion, the different interests of donor countries and countries receiving financial assistance emerged.
Despite the desire of some states, including Ukraine, to achieve greater reductions in fees, this decision was a compromise.
“What’s next? And then the world’s major economies (and their central banks) cope with inflation, and therefore the central banks begin a cycle of lowering key rates, and therefore the base lending rate will soon begin to rapidly decrease from the high where it was last year which will further reduce the cost of IMF resources for Ukraine, “added Rashkovan.
We remind you that the IMF has agreed with Ukraine on the fifth revision of the four-year Extended Fund Facility program. As a result of the mission in Kyiv, Ukraine will have access to $1.1 billion. In addition, the fund forecasts GDP growth of 3% in 2024.
Ukraine’s economy grew compared to last year
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.