IMF chief: Ukraine’s performance remarkable, but more needs to be done

Despite the ongoing war and Russia’s intensified attacks, Ukrainian authorities have done an amazing job to steer the economy very effectively. At the same time, more needs to be done, namely with regard to domestic revenue mobilization.

The relevant statement was made by International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Washington on Thursday when replying to a question from an Ukrinform correspondent.

“The Ukrainian people have shown incredible bravery, and Ukrainian authorities have done an amazing job to steer the economy during a war, very effectively. Performance of Ukraine is remarkable,” Georgieva noted.

In her words, as part of the fifth review of the Extended Fund Facility (EFF) Arrangement for Ukraine, all benchmarks were met, providing for very important actions that are around strengthening governance and anti-corruption efforts.

Georgieva pointed out that the war is a fertile ground for corruption.

“Therefore, more needs to be done in that area, and Ukraine is doing it,” Georgieva stressed.

She mentioned that the fifth review of the EFF Arrangement for Ukraine had been completed in exceptionally difficult circumstances. Over the last months, Russia has intensified bombing in Ukraine, specifically targeting energy objects.

“Just imagine what it means for families and businesses. They face winter, and there would be restrictions in access to electricity, to heat. And yet the determination of the country is there,” Georgieva emphasized.

According to her, despite the challenges, Ukrainian authorities recognize the need to mobilize domestic revenues.

“Why is this important? Because we have a program that is strongly supported by the international community. In fact, we look at something in the order of $150 billion support over the four years of our program, and that the Ukrainian authorities recognize has to be matched by the will of Ukraine to raise revenues as well,” Georgieva explained.

She confirmed that the IMF and Ukrainian authorities had been discussing the implementation of Ukraine’s strategy for domestic revenue mobilization, including “the way the tax system works, taxes are collected.”

“We are very much in favor of what Ukraine is doing, which is use technology to make taxes transparent, so you can see who is paying how much. And then you can see what the money is used for accountability to the taxpayer,” Georgieva added.

In her words, this happens as financial support from Ukraine’s friends has gone up, as well as the country’s needs amid the war. In this context, the Ukrainian side confirms its commitments to do their part under the EFF Arrangement.

A reminder that, according to the IMF’s World Economic Outlook for October 2024, Ukraine’s economy is expected to show a rise of 3.0% in 2024 and decline to 2.5% in 2025.