IMF Staff Country Reports

This paper focuses on Ukraine’s First Review under the Extended Arrangement under the Extended Fund Facility (EFF). The authorities have made strong progress toward their commitments under the EFF under challenging conditions, meeting all applicable quantitative performance criteria through end-April and structural benchmarks through end-June, and remain highly committed to the program. Continued strong ownership and reform momentum are necessary to safeguard macroeconomic stability, enhance institutional reforms, and support reconstruction efforts, while facilitating Ukraine’s path to EU accession. In the near term, fiscal policies will continue to focus on ensuring adequate resources for priority spending, sustaining strong tax revenues, including by refraining from measures that would erode the tax base, and preserving fiscal and debt sustainability. Reforms to strengthen governance, transparency and tackle corruption need to proceed immediately. Progress on strengthening governance and tackling corruption remain essential to convince foreign investors that there is a level playing field in Ukraine, and to assure donors that their resources will be well spent. These reforms are also critical for progress toward EU accession.