Sergii Marchenko met with the IMF management

On October 10, during the Annual Meetings of the IMF and the World Bank, Minister of Finance of Ukraine Sergii Marchenko met with IMF Managing Director Kristalina Georgieva and Director of the IMF European Department Alfred Kammer.

​​In 2023, Sergii Marchenko represents Ukraine as Chair of the IMF and World Bank Board of Governors. This is the first time Ukraine has received this status in 30 years of membership in the IMF and WB.

The meeting was also attended by Deputy Minister of Finance Olga Zykova, Government Commissioner for Public Debt Management Yuriy Butsa, Deputy Minister of Finance for European Integration Yuriy Draganchuk and representatives of the National Bank of Ukraine, headed by its Governor Andriy Pyshnyy. 

The parties discussed the economic situation in Ukraine, the current state of cooperation and the implementation by the Ukrainian side of the four-year Extended Fund Facility (EFF) program.

"Further cooperation with the IMF is one of the priorities for the Government of Ukraine. For many years, the Fund has supported Ukraine in maintaining macro-financial stability by providing financial assistance and cooperation in implementing important measures and policies in the fiscal and financial spheres. After the start of a full-scale war, the IMF has once again demonstrated leadership by providing financial assistance in the first days of russia's full-scale invasion under the Rapid Financing Instrument, a historic decision on a financial program for a warring country under the Extended Fund Facility, and assistance in mobilizing additional financial resources for Ukraine's urgent needs," said Sergii Marchenko.

On March 31 2023, the Executive Board of the International Monetary Fund approved a four-year Extended Fund Facility (EFF) program for Ukraine in the amount of USD 15.6 billion. Ukraine's State Budget has already received the two tranches totaling USD 3.6 billion. In addition, subject to a successful second review of the program, Ukraine could receive a third tranche of USD 895 million in 2023.  

In total, since the beginning of the full-scale war, the Ministry of Finance has attracted about USD 6.3 billion of budget support from the IMF.

The key areas of reforms identified in cooperation with the IMF under the EFF include: strengthening macro-financial stability, structural fiscal policy, fiscal transparency, strengthening public investment management, deregulation of economic activity and improvement of the business climate, strengthening the fight against corruption, and reform of the energy sector.

Ukraine has already performed several structural benchmarks envisaged by the EFF program. These include enactment of the second Supplementary Budget in 2023, preparing a draft legislative initiative to strengthen the Budget Code, complete inputs toward developing the National Revenue Strategy and others. 

Sergii Marchenko also noted that Ukraine's economy continues to function fully despite the challenges of the war. This year, GDP is expected to grow, inflation has been declining for 9 months in a row, and tax revenues have returned to pre-war levels. 

"This is facilitated by the effective policy of the Government of Ukraine and the significant support of international partners. In 2023, external financing has already reached USD 32.6 billion, and since February 24, 2022 - USD 63.7 billion. Due to the efforts of our partners, we have achieved predictability and stability in attracting international funds this year. At the same time, there is a significant need for financing for the next year. The State Budget deficit is projected at USD 42.9 billion", the Minister of Finance said. 

In this context, Sergii Marchenko noted that the EFF program is a pillar of cooperation with international partners and helps to attract large-scale funding from donors, including the G7 countries and the European Union.