According to Kristalina Georgieva, managing director of the IMF, a comprehensive program of support for Ukraine is still several weeks away from being finalized.
This comes hours after the IMF announced on Friday that it had reached an agreement with Ukrainian authorities at the staff level, opening the door for discussions on a comprehensive loan program that would support Kyiv's economy and advance its EU membership bid. The IMF management must now approve the plan.
“Time is not Ukraine’s friend in these extraordinary conditions of war,” Georgieva said at the Munich Security Conference.
“We talk about a number of weeks, not a very long period of time,” she added when pressed on the timeline to implement the program.
According to Georgieva, the UN financial agency is confident that Ukraine satisfies all of its requirements for stable financial markets, effective governance, and fiscal policy.
“We have a country where institutions work. Where pensions are paid. Where social services are in place. Where the government is keenly interested to continue to reform, even when bombs are falling,” she noted.
The program debuts as Ukraine prepares for the first anniversary of Russia's invasion on February 24. Even though the IMF projects that Ukraine will need more than $40 billion in financial assistance this year and that its economy will expand after contracting by 30% in 2022,
“Ukraine does need the IMF at this very critical time,” Georgieva said. “Why? Because financial needs are significant: We put them somewhere between $40-48 billion for this year.”
“And two, because the country does need the policy support that the IMF provides. To run a war economy is not a trivial matter,” she added.
Georgieva claimed that the reforms would help "accelerate" Ukraine's efforts to eventually join the EU in addition to aiding its economy during the conflict.
On June 23, 2022, the European Parliament passed a resolution urging the immediate grant of Ukraine candidate status for EU membership. On the same day, the European Council granted the nation candidate status for membership in the EU.
“We make the desire of Ukraine to join the European Union a priority in our work,” Georgieva said Saturday.
“They belong there,” she added. “And the Fund, of course, can help them move faster on that road.”
(Source:www.cnbc.com)
This comes hours after the IMF announced on Friday that it had reached an agreement with Ukrainian authorities at the staff level, opening the door for discussions on a comprehensive loan program that would support Kyiv's economy and advance its EU membership bid. The IMF management must now approve the plan.
“Time is not Ukraine’s friend in these extraordinary conditions of war,” Georgieva said at the Munich Security Conference.
“We talk about a number of weeks, not a very long period of time,” she added when pressed on the timeline to implement the program.
According to Georgieva, the UN financial agency is confident that Ukraine satisfies all of its requirements for stable financial markets, effective governance, and fiscal policy.
“We have a country where institutions work. Where pensions are paid. Where social services are in place. Where the government is keenly interested to continue to reform, even when bombs are falling,” she noted.
The program debuts as Ukraine prepares for the first anniversary of Russia's invasion on February 24. Even though the IMF projects that Ukraine will need more than $40 billion in financial assistance this year and that its economy will expand after contracting by 30% in 2022,
“Ukraine does need the IMF at this very critical time,” Georgieva said. “Why? Because financial needs are significant: We put them somewhere between $40-48 billion for this year.”
“And two, because the country does need the policy support that the IMF provides. To run a war economy is not a trivial matter,” she added.
Georgieva claimed that the reforms would help "accelerate" Ukraine's efforts to eventually join the EU in addition to aiding its economy during the conflict.
On June 23, 2022, the European Parliament passed a resolution urging the immediate grant of Ukraine candidate status for EU membership. On the same day, the European Council granted the nation candidate status for membership in the EU.
“We make the desire of Ukraine to join the European Union a priority in our work,” Georgieva said Saturday.
“They belong there,” she added. “And the Fund, of course, can help them move faster on that road.”
(Source:www.cnbc.com)
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