IMF Staff Country Reports

This paper presents Ukraine’s Request for an Extended Arrangement under the Extended Fund Facility (EFF) and Review of Program Monitoring with Board Involvement. Ukraine’s EFF-supported program aims to anchor policies that sustain fiscal, external, price and financial stability and support economic recovery, while enhancing governance and strengthening institutions to promote long-term growth in the context of post-war reconstruction and Ukraine’s path to EU accession. The approval of the EFF is expected to mobilize large-scale concessional financing from Ukraine’s international donors and partners, to help resolve Ukraine’s balance of payments problem, attain medium-term external viability, and restore debt sustainability on a forward-looking basis in both a baseline and downside scenario. Further improving governance is critical to Ukraine’s objectives of EU membership and achieving sustained growth. Independent and effective anti-corruption institutions will help mitigate corruption risks during Martial Law and promote public trust and donor confidence in future reconstruction. Policies will need to preserve financial stability and prepare for the post-war recovery, including contingency planning, bank diagnostics, as well as tackling troubled banks and nonperforming assets.