Ukraine undertakes to implement more structural benchmarks under IMF arrangement

The number of structural benchmarks under the IMF's Extended Fund Facility arrangement for Ukraine increased from 19 to 23 in the updated Memorandum based on the results of the first review.

This is stated in the document published by the IMF on Friday, Ukrinform reports.

As noted, the increase in the number of benchmarks aims to buttress near-term macroeconomic and financial stability and underpin reform momentum.

In particular, in addition to the previous requirements, Ukraine undertook to reinstate the articles of the Budget Code by the end of September 2023, allowing preparation framework, elaboration of a debt strategy, and ringfencing risks from state guarantees.

By the same deadline, the Ukrainian side must also prepare a concept note related to the 5-7-9 affordable loan program. The document should contain proposals for small and medium enterprises by phasing out the eligibility of large companies, enhance monitoring, and maintain adequate safeguards.

Another new structural benchmark concerns the preparation of short-term and long-term action plans of the Ministry of Finance, the tax and customs services for carrying out reforms in key areas. The deadline for fulfilling this requirement is set for the end of October this year.

By the same deadline, Ukraine undertook to appoint a supervisory board for the GTS Operator.

At the same time, the IMF agreed to postpone by one month (until the end of July) the deadline for one of the previous requirements – regarding the adoption of the draft law on tax policy and administration, as well as to make other amendments to the previous list of benchmarks.

At the same time, it is noted that Ukraine has already fulfilled five structural benchmarks defined at the beginning of the Extended Fund Facility (EFF).