Ukraine: Request for Stand-By Arrangement-Staff Report; Staff Supplement; and Press Release on the Executive Board Discussion
IMF Staff Country Reports, May 18, 2004
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- Ukraine: Request for Stand-By Arrangement-Staff Report; Staff Supplement; and Press Release on the Executive Board Discussion
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Bibliographic details
- Authors: Arrangement-Staff Report
- Published: May 18, 2004
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451839005.002
Executive summary
- The authorities have requested a 12-month Stand-By Arrangement (SBA), which they intend to treat as precautionary.
- The economic program for 2004 aims to sustain recent stabilization gains and advance important structural reforms.
- Key program objectives include supporting economic growth; keeping inflation under control; bolstering debt sustainability; maintaining an adequate level of international reserves; reducing credit risk in the banking sector; and improving the investment climate, including through wide-ranging tax reforms.
Major findings and focus areas
- Stabilization and growth:
- The program targets sustaining recent stabilization gains while supporting economic growth.
- Inflation and monetary stewardship:
- Keeping inflation under control is a principal objective.
- Debt and reserves:
- Bolstering debt sustainability is emphasized.
- Maintaining an adequate level of international reserves is an explicit program aim.
- Banking sector and credit risk:
- Reducing credit risk in the banking sector is prioritized, including measures to strengthen banking sector capitalization.
- Investment climate and tax reform:
- Improving the investment climate is a core objective, with a focus on wide-ranging tax reforms and addressing VAT refund arrears.
- Other subjects highlighted:
- Arrears, Commercial banks, Credit, Debt service, External debt, Money, Public debt.
Policy recommendations and reform priorities
- Treat the 12-month SBA as precautionary while using it to reinforce confidence in macroeconomic policies.
- Implement structural reforms to:
- Strengthen banking sector capitalization and reduce credit risk.
- Advance wide-ranging tax reforms to improve the investment climate and address VAT refund arrears.
- Enhance stewardship of monetary policy to keep inflation under control.
- Pursue measures to bolster debt sustainability and maintain adequate international reserves.
Keywords and topical tags (as stated in the document)
- Arrears, Baltics, CR, Credit, Debt service, February, government, increase foreign direct investment, ISCR, stewardship of monetary policy, strengthening of banking sector capitalization, Ukraine's stewardship, VAT refund arrears
International Monetary Fund. "Ukraine: Request for Stand-By Arrangement-Staff Report; Staff Supplement; and Press Release on the Executive Board Discussion", IMF Staff Country Reports 2004, 129 (2004), May 18, 2004.