Ukraine: Stand-By Arrangement: Review Under the Emergency Financing Mechanism

IMF Staff Country Reports, January 22, 2009

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Ukraine: Stand-By Arrangement: Review Under the Emergency Financing Mechanism

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Bibliographic details

• Published: January 22, 2009
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451839159.002

Executive summary

• Paper discusses key findings of the two-year Stand-By-Arrangement for Ukraine under the Emergency Financing Mechanism.
• Output growth is turning negative on the back of a large terms-of-trade shock and the ongoing credit crunch.
• The deterioration of the economic and financial situation is contributing to an increase in program implementation risks.
• Policy implementation is in line with the program.
• The authorities have introduced a flexible exchange rate regime, tightened monetary policy, and have taken measures to contain the 2008 government deficit.

Macroeconomic developments and risks

• Output growth: turning negative (no further numeric estimate provided in source).
• Main drivers:
  • large terms-of-trade shock
  • ongoing credit crunch
• Consequence: deterioration of the economic and financial situation increases program implementation risks.

Policy actions and assessment

• Exchange rate policy:
  • Introduction of a flexible exchange rate regime.
• Monetary policy:
  • Monetary policy has been tightened.
• Fiscal policy:
  • Measures taken to contain the 2008 government deficit.
• Overall assessment: Policy implementation is in line with the program.

Subjects and keywords covered

• Subject: Bank deposits, Banking, Currencies, Exchange rate arrangements, Exchange rate flexibility, Exchange rate policy, Exchange rates, Foreign exchange, Money
• Keywords: bank, bank recapitalization program, bank recapitalization scheme, bank share, CR, credit portfolio, Currencies, Exchange rate arrangements, Exchange rate flexibility, Exchange rate policy, exchange rate volatility, Exchange rates, Global, goods terms of trade, hryvnia, ISCR, public finance, terms-of-trade shock, Western Europe

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• Ukraine—Stand-By Arrangement—Review Under the Emergency Financing Mechanism
  • Ukraine—Stand-By Arrangement—Review Under the Emergency Financing Mechanism (Markdown version)
  • Ukraine—Stand-By Arrangement—Review Under the Emergency Financing Mechanism (PDF)