The IMF called on partners to invest in Ukraine now to avoid higher costs in case of its defeat
Ukraine has proven to be a reliable borrower with a clear debt repayment plan, so providing financial support to the country now is beneficial for its partners, as it avoids more serious consequences in case of defeat in the war. Such an opinion expressed permanent representative of the International Monetary Fund (IMF) in Ukraine Prishila Tofano.
“Funding the country now is worth it. Not only from the point of view of values, principles or morality, but it may be cheaper for its (Ukraine’s) allies. It is cheaper to fund Ukraine now and prevent it from losing the war, than later to cover the costs of additional defense or refugees if Ukraine loses war”, Tofano noted during the conference “Matrix of reforms: Basics of strengthening economic growth for joining the EU” in Kyiv.
Tofano also emphasized the importance for Ukraine to demonstrate its ability to conduct effective policies, continuing to prove its reliability to international partners.
According to her, although Ukraine has made significant efforts to increase its own revenues, the scale of the economic shock caused by Russian aggression is so great that external financial support is critically needed. In this context, she noted the G7 initiative “Acceleration of obtaining emergency revenues”, which provides for the allocation of $50 billion at the expense of revenues from frozen Russian assets.
After the end of the war, according to Tofano, Ukraine will have to spend significant resources on infrastructure restoration, social programs, reintegration of veterans and return of citizens who went abroad. In this regard, she emphasized the importance of raising taxes, particularly the value added tax, and following the National Revenue Strategy to ensure long-term economic sustainability.
