On December 12, the IMF approved another tranche of $900 million for Ukraine. The money will be used for budget support.
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In March 2023, the IMF approved a loan to Ukraine in the amount of $15.6 billion. for four years. The first tranche, for 2.7 billion, arrived in April, the second, for 890 million, in June.
Ukraine’s economy has proven to be stable, and macroeconomic and financial stability has been maintained thanks to the skillful policies of the government and foreign assistance, said IMF head Kristalina Georgieva.
The Fund has released an updated memorandum from Ukraine on economic and financial policies under the Extended Fund Facility (EFF).
According to this document, Ukraine assumed a number of obligations in order to receive the next tranches from the fund. Thus, by the end of December 2023, Ukraine must complete three IMF structural beacons at once. First, improve public investment management by developing a roadmap for this. The IMF is also awaiting approval of the National Revenue Strategy.
We expect the authorities to gradually reduce the budget deficit, which will require, in particular, measures to restore domestic revenues. We expect revenues to rise by three to four percentage points of GDP. The key initiative to achieve this goal is the National Revenue Strategy,” Interfax-Ukraine agency quotes the head of the IMF mission in Ukraine, Gavin Gray.
According to him, the strategy is a specific comprehensive plan to gradually increase tax revenues, including measures in the field of tax policy, tax administration and customs administration.
Also, by the end of December, bills registered in the Verkhovna Rada on increasing the institutional autonomy of the Specialized Anti-Corruption Prosecutor’s Office (SAP) should be adopted.
Also, according to the new memorandum, Ukraine must complete 14 more lighthouses during 2024. In particular, by July, ensure the holding of an open and competitive competition for 24 vacancies in the High Anti-Corruption Court (HACC) and appoint new judges. By the end of September, complete an external audit of the activities of the National Anti-Corruption Bureau (NABU) and submit a report.
Also, to strengthen corporate governance at state-owned enterprises, Bill No. 5593-d should be adopted at the beginning of 2024, which will bring the corporate governance system of state-owned enterprises in line with the principles of the Organization for Economic Co-operation and Development (OECD) and mitigate budgetary risks.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.