IMF Managing Director Kristalina Georgieva’s Statement to the Financial Community on Ukraine

IMF News, August 9, 2024

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The IMF’s financing for the program totals US$15.6 billion.
This IMF financing is part of a broader US$122 billion external support package to Ukraine comprising contributions from both the official and private sector.
The program aims to sustain economic and financial stability at a time of exceptionally high uncertainty, restore debt sustainability, and promote Ukraine’s advancements on the path toward EU accession.

The Ukrainian authorities’ strategy to restore debt sustainability involves:
- treatments of both official and external commercial debt;
- continued external financing on concessional terms; and
- fiscal consolidation (described as revenue-based fiscal consolidation).
Ukraine’s official creditors, as represented by the Group of Creditors of Ukraine (GCU), have agreed to a debt service standstill until the end of the Fund-supported program, and a commitment to deliver a final debt treatment as required to restore debt sustainability by the final review of the program.
Ukraine’s external commercial creditors agreed to a debt service standstill until August 2024.
The Ukrainian authorities indicated their intention to complete a debt treatment with their external commercial creditors prior to the end of this debt service standstill.

A recent agreement was reached between the Ukrainian authorities and the Ad Hoc Creditor Committee of holders of Ukraine’s Eurobonds and a set of guaranteed Ukravtodor bonds.
IMF staff assesses the terms of this agreement to be in line with the debt sustainability objectives of the IMF-supported program.
The Group of Creditors of Ukraine (GCU) is also of the view that the agreement complies with the comparability of treatment expected by them.
The IMF statement notes that, together with the full implementation of the Ukrainian authorities’ restructuring strategy, the successful implementation of this agreement will:
- provide significant debt service relief;
- create room for critical spending and supporting growth; and
- further contribute to Ukraine’s efforts to bring debt burdens to sustainable levels.

The Ukrainian authorities have committed to remain engaged with creditors, and to be ready to undertake a further restructuring as necessary to ensure debt sustainability is secured by the end of the program.
The Ukrainian authorities have demonstrated their capacity to put in place sound policies and pursue an ambitious reform agenda, including:
- a revenue-based fiscal consolidation; and
- structural reforms to support sustained growth.
The statement emphasizes that continued support from:
- Ukraine’s official creditors and donors, and
- other international financial institutions,

together with the participation of bondholders in this debt operation, is critical to the success of this reform agenda.

IMF Managing Director Kristalina Georgieva’s Statement to the Financial Community on Ukraine — August 9, 2024.