IMF Mission: "Discussion of New Ukraine Program Will Continue"
27 September, 2019

Representatives of the International Monetary Fund mission made a statement on the results of their work in Kyiv between September 11-26. They noted that discussions on Ukraine's new IMF cooperation program would continue over the next few weeks.

This is stated in the press release of the IMF.

Representatives of the IMF mission note that Ukraine has made some progress in the reforms in recent years, but there are currently a number of problems with the business climate and economic growth that do not attract foreign investors and do not create a decent standard of living for the population.

“A regional comparison shows that the most significant differences in reform progress between Ukraine and its neighbors are in the quality of the legal institutional framework. While there has been progress in setting up new institutions to fight corruption, tangible results have yet to be achieved,” the fund notes.

READ MORE: IMF Resident Representative on Reforming Ukraine

They added that poor business conditions do not create the conditions for job creation, which is why Ukrainians are forced to go to work abroad.

“Higher, sustainable and inclusive growth is needed for incomes in Ukraine to catch up to the levels seen in neighboring countries. This will depend crucially on the implementation of ambitious reforms to support Ukraine’s transition to a full-fledged market economy,” the IMF mission said.

At the same time, representatives of the Fund stress that after the elections, the Ukrainian authorities got a chance to carry out all necessary reforms. In particular, the country's leadership has set an ambitious goal to transform Ukraine's economy and improve the lives of all Ukrainians.

“The authorities have requested a new IMF-supported program to help them achieve these objectives, by providing an anchor for their economic policies and helping to cover financing needs in the coming years. The mission started discussions on a new 3-year arrangement that could be supported under the IMF’s Extended Fund Facility,” the IMF statement reads.

On September 26, the IMF mission completed its work in Ukraine. This information was confirmed to Hromadske by the IMF press service in Ukraine.

READ MORE: Four Years of Drama: Outgoing Interview with the Head of IMF Mission to Ukraine

According to the UNN news agency, mission representatives failed to reach an agreement with the government on a new cooperation program. In particular, it was influenced by Prime Minister Oleksiy Honcharuk's statement about a "compromise" with oligarch Ihor Kolomoisky on PrivatBank nationalization.

On September 12, the IMF mission officially started its work in Ukraine. The following day, mission representatives met with the leadership of the National Bank of Ukraine. On September 25, mission representatives held a meeting with the National Bank Board and discussed the terms of a new loan program for Ukraine.

Earlier, the National Bank reported that the new program of cooperation with the IMF would be up to four years long, and will provide for funding of up to $10 billion.