Ukraine: First Review Under the Stand-By Arrangement, Requests for Extension and Rephasing of Access of the Arrangement, Waivers of Nonobservance of a Performance Criterion, Financing Assurances Review, and Monetary Policy Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

IMF Staff Country Reports, November 24, 2021

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Canonical URL: Ukraine: First Review Under the Stand-By Arrangement, Requests for Extension and Rephasing of Access of the Arrangement, Waivers of Nonobservance of a Performance Criterion, Financing Assurances Review, and Monetary Policy Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

After a number of critical setbacks and delays in the 16 months since program approval, the authorities have taken important corrective actions to address shocks to program objectives.
Early tension around the authorities’ commitment to uphold the independence of the National Bank of Ukraine required a pause to assess policy continuity and to determine possible corrective actions.
A prior action for this review and new commitments by the authorities provide a way forward in protecting a key policy pillar under the program.
Adverse Constitutional Court rulings challenged the anticorruption framework in fundamental ways and required restoring its effectiveness before the review could proceed.
In a push to make progress on delayed structural benchmarks, the authorities have recently met seven of the nine structural benchmarks set at the time of the program request.

Political and institutional tensions affected program implementation and required reassessment of policy continuity, particularly regarding the independence of the National Bank of Ukraine.
Constitutional Court rulings imposed material challenges to the anticorruption framework, necessitating corrective measures before program review advancement.
Structural benchmark delivery: seven of the nine structural benchmarks set at program request have been met recently.

Prior action and new commitments by the authorities are central to restoring confidence in a key policy pillar (the independence of the National Bank of Ukraine).
Restoring the effectiveness of the anticorruption framework was a precondition for proceeding with the review.
Continued implementation of the remaining structural benchmarks is implied to be necessary to advance program objectives.

Publication date: November 24, 2021
Pages: 136
Volume: 2021
Issue: 250
Series: Country Report No. 2021/250
DOI: https://doi.org/10.5089/9781616355272.002
Stock No: 1UKREA2021001
ISBN: 9781616355272
ISSN: 1934-7685
Subject: Corporate governance, Economic sectors, External debt, Financial institutions, Fiscal policy, Inflation, International organization, Loans, Monetary policy, Prices
Keywords: Corporate governance, Global, IMF's transparency policy, Inflation, key rate, Loans, management team, monetary policy consultation, policy continuity, real GDP, state support

International Monetary Fund; Country Report No. 2021/250; November 24, 2021.