Loan in exchange for reforms: IMF representatives have arrived in Ukraine
18 March 14:09
Today, March 18, a mission from the International Monetary Fund arrived in Ukraine.
According to [Komersant], this was announced by Priscilla Tofano, the IMF’s Resident Representative in Ukraine.
According to her, IMF experts led by Gavin Gray have begun a series of meetings with Ukrainian officials and other partners as part of the Fund’s staff visit.
“Discussions will focus on macroeconomic policy and key structural reforms,” said Prishila Tofano, the IMF’s Resident Representative in Ukraine.
What preceded this
As a reminder, Bloomberg reported yesterday that the IMF expressed concern about Ukraine’s ability to receive the remaining funding from the $8.1 billion package due to delays in passing necessary decisions in the Verkhovna Rada.
As is known, the IMF previously approved a new Extended Fund Facility program for Ukraine. It is designed to last four years and amounts to $8.1 billion, which will partially cover Ukraine’s budget deficit.
Ukraine received the first tranche—about $1.5 billion—in early March.
Further disbursements depend on the fulfillment of a number of conditions. In particular, Ukraine must introduce a VAT for individual entrepreneurs with an annual income exceeding 1 million hryvnias.
Additionally, to receive the funding, Ukraine must introduce a tax on online sales (including through OLX), a duty on all international parcels, and make the military levy permanent.
