IMF’s UCDF approves initial workplan with $27.5M in financing

The relevant statement was made by the National Bank of Ukraine (NBU), an Ukrinform correspondent reports.

“The UCDF’s Workplan covers key economic and financial reforms, specifically with regard to regulating the financial sector and monetary policy. Each element of the plan is aligned with the reforms under the EFF program, which will help us to be even more confident and effective in its implementation, and thus ensure the capacity, stability and modernization of Ukraine’s economy and financial sector on its way to the EU,” NBU Governor Andrii Pyshnyy noted.

The UCDF’s initial workplan with $27.5 million in financing, which was endorsed at the Inaugural Meeting on February 13, 2024, covers technical assistance from the IMF and partners during 2024-2028.

Such donors as the Netherlands, Slovakia, Latvia, Japan, and Lithuania are providing $16.5 million in current funding. At the same time, the IMF is working to increase the financing budget to $65 million.

The key elements of the UCDF Workplan are as follows: fiscal reforms (revenue mobilization and public financial management); monetary policy; financial sector regulation; financial integrity and reducing corruption; strengthening data compilation and dissemination; country-tailored training for Ukrainian authorities and technical assistance on macroeconomic frameworks.

“UCDF began its work and is ready to provide assistance to Ukrainian authorities within the framework of the IMF’s capacity development activities. We are confident that it will play a significant role in supporting the implementation of economic and financial reforms in Ukraine, which has demonstrated an extraordinary level of resilience during a full-scale war,” IMF Mission Chief for Ukraine Gavin Gray mentioned.

A reminder that, in May 2023, the IMF announced a new large-scale technical assistance program for Ukraine with a five-year horizon.

The Ukraine Capacity Development Fund (UCDF) is a trust fund managed and administered by the IMF. The UCDF’s Steering Committee includes the representatives of donor countries, Ukrainian authorities, and the IMF.

Photo: bank.gov.ua