IMF Board discusses Program Monitoring with Board involvement for Ukraine
IMF News, December 19, 2022
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- Published: December 19, 2022
Overview
- The IMF Executive Board discussed Program Monitoring with Board involvement (PMB) for Ukraine.
- The 4-month PMB, which has been approved by IMF Management, is designed to help Ukraine maintain stability and catalyze donor financing amid very large balance of payment needs and exceptionally high risks.
- Press Release No. 22/446; December 19, 2022.
Context and economic conditions
- Russia’s invasion continues to have a devastating social and economic impact on Ukraine.
- Civilian casualties are mounting; over a third of the population has been displaced.
- Access to basic needs such as electricity, water, and heating is at risk.
- Destruction of housing, infrastructure, and productive capacity has been massive.
- As a result:
- Economic activity has severely contracted.
- Inflation remains high.
- Public finances are under extreme pressure.
- Balance of payment needs remain very large and risks are exceedingly high.
Purpose and rationale for the PMB
- The PMB is tailored to Ukraine’s exceptional circumstances to:
- Help the authorities implement prudent macroeconomic policies during this particularly difficult period.
- Catalyze donor financing, with large and predictable external financial support deemed critical to the authorities’ strategy.
- Frontloaded disbursements would help address strains in early 2023.
- Management approved the authorities’ request for Program Monitoring with Board Involvement (PMB).
Key measures and policy priorities under the PMB
- Targeted set of policy actions to support macroeconomic and financial stability:
- Enhancing revenue mobilization.
- Containing monetary financing and therefore reviving domestic debt markets.
- Preparing a financial sector strategy.
- Enhancing transparency and governance.
- Promoting and preserving gains from past Fund-supported programs, including independence of the National Bank of Ukraine and broader governance and anti-corruption measures.
- Strong implementation of the PMB should help pave the way toward a possible full-fledged IMF-supported program.
Risks and implied scenarios
- The authorities are committed to continue adapting policies to fast changing circumstances, including in the case of a severe downside scenario.
- The PMB addresses immediate stabilization needs while recognizing that balance of payment needs are very large and risks are exceedingly high.
Communications and contact (from release)
- IMF Communications Department; MEDIA RELATIONS.
- PRESS OFFICER: Meera Louis
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- @IMFSpokesperson
_ Source: Press Release No. 22/446, IMF, December 19, 2022._