The International Monetary Fund (IMF) has updated the memorandum on the economic and financial policy of Ukraine within the framework of the fifth review of the credit program, setting out new requirements for further financial support. About this it is said on the organization’s official website.
By the end of December 2024, Ukraine must complete several important tasks:
- Restarting the Accounting Chamber – it is necessary to adopt the appropriate law to reform this institution.
- Independence of the NCRECP – amendments should be made to the law on law-making activities to ensure the functional independence of the National Commission, which carries out state regulation in the spheres of energy and communal services.
- Formation of the supervisory board of “Ukrenergo” – this structure should be staffed by seven members: three from the state and four independent (foreign) experts.
Also, by the end of October 2024, the National Bank of Ukraine should conduct an assessment of key financial and operational risks for financial stability, preparing contingency plans.
Overdue tasks
- The IMF postponed some of the requirements previously established under the program:
- NABU audit – postponed from the end of September 2024 to the end of January 2025.
- Changes to the Criminal Procedure Code regarding the terms of the pre-trial investigation have also been postponed to the beginning of 2025.
By the end of the first half of 2025, Ukraine must fulfill several more conditions:
- Amendments to the Budget Code within the framework of the State Investment Management Action Plan (until January 2025).
- Appointment of a new head of the Bureau of Economic Security (until February 2025).
- Approval of the methodology for evaluating state investment projects (until February 2025).
- Registration of the draft law on tax reporting for operators of digital platforms (until April 2025).
- Appointment of the head of the State Customs Service and heads of all regional customs offices (until June 2025).
- Submission of the budget declaration for 2026-2028 in accordance with the requirements of the program (by June 2025).
After the fifth review of the Enhanced Financing Program (EFF), the IMF board approved the allocation of another tranche to Ukraine in the amount of about 1.1 billion US dollars. These funds will be used to support the state budget of Ukraine.
The IMF notes that the economic situation of Ukraine in the first half of 2024 was more stable than expected. Economic growth continued thanks to moderate inflation and strong external support, but the outlook for the rest of 2024 and into 2025 has worsened due to continued Russian attacks on the country’s energy infrastructure and general uncertainty related to the war.
