IMF advises Ukraine to keep focus on structural reforms

The International Monetary Fund (IMF) expects Ukraine to implement previously agreed structural reforms, despite the challenging conditions caused by the pandemic, to ensure inclusive growth of the national economy after the crisis.

IMF Spokesperson Gerry Rice said this during an online press briefing on March 25, an Ukrinform correspondent reports.

“In addition to maintaining an adequate response to the crisis, we continue to advocate for structural reforms in Ukraine,” he said, commenting on the prospects for extending the Stand-By Arrangement for Ukraine.

At the same time, he acknowledged that it is now more difficult to focus on deep structural reforms in the face of economic slowdown and the health and humanitarian emergencies caused by COVID-19. According to him, the reform program in Ukraine remains incomplete so far. “Therefore, it is important for Ukraine to continue moving forward in creating conditions for inclusive growth after the crisis. We agreed on a well-focused set of reforms needed to ensure fiscal sustainability over the medium term, as well as protect financial sector stability - areas where Ukraine has made significant progress over the past five years,” Rice said.

The IMF representative also noted that the agenda for the next few months of interaction with Ukraine will continue to focus on discussions of this set of reforms. Rice emphasized that these discussions continue after the work of the IMF virtual mission and they are "active".

As Ukrinform reported, on February 12, the IMF mission completed its work in Ukraine, but the decision to review the Stand-By Arrangement was not made.

On June 9, the IMF Executive Board approved a new 18-month Stand-By Arrangement for Ukraine with total funding of USD 5 billion. Ukraine received the first tranche of USD 2.1 billion on June 12.

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