The IMF approved a new monitoring program for Ukraine. — Money — tsn.ua
The Executive Board of the IMF discussed the monitoring program for Ukraine and supported it.
A four-month monitoring program with the involvement of the board of directors (MPZR – ed.), which was approved by the management. the IMFdesigned to help Ukraine maintain stability and stimulate donor financing in conditions of very large balance of payments needs and extremely high risks.
About this exactly in the application on the website of the International Monetary Fund.
The main measures within this program include strengthening revenue mobilization and stimulating the domestic debt sector, preparing a financial sector strategy, as well as increasing market transparency and governance.
“Russia’s invasion continues to have a devastating social and economic impact on Ukraine. As a result, economic activity has declined sharply, inflation remains high, and public finances are under significant pressure,” said Gita Gopinath, First Deputy Managing Director of the IMF.
She added that the authorities have largely succeeded in maintaining macroeconomic and financial stability, and they intend to continue to adapt policies to such rapidly changing conditions. At the same time, the needs of the balance of payments remain very large, and the risks are extremely high.
Therefore, the IMF approved the authorities’ request to monitor the programs with the participation of the board. It was developed taking into account the requirements of Ukraine, to help the authorities implement a balanced macroeconomic policy in a particularly difficult period and to speed up donor financing.
“Large and predictable external financial support will be critical to the success of the government’s strategy, and payments in early 2023 will fully overcome the strain,” the statement said.
IMF forecasts
Before the IMF announced a gloomy forecast for the world economy. Among the causes of the situation, monetary policy contributed to high inflation, weak growth rates in China, as well as supply disruptions and food insecurity caused by Russia’s full-scale invasion of Ukraine.
Also the International Monetary Fund previously stated that global inflation is approaching its peak. The rise in the cost of living, the war against Russia, and COVID-19 have all had a major impact on the global economy.
Besides the IMF explained the impact of the invasion of the Russian Federation on the economy of Ukraine. As a result of the full-scale war, GDP fell sharply, inflation rose, trade was greatly increased, and the budget deficit rose to unprecedented levels.
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