IMF managing director, Ukrainian finance minister discuss revenue mobilization through reforms

MOSCOW. May 23 (Interfax) - International Monetary Fund (IMF) Managing Director Kristalina Georgieva and Ukrainian Finance Minister Sergei Marchenko have met on the sidelines of a meeting of G7 finance ministers and central bank governors in Banff, Canada, to discuss the economic resilience of Ukraine under unfavorable circumstances and the importance of a flexible policy, Ukrainian media said.

They also addressed main reforms supporting mobilization of domestic revenues and governance, the media said, citing Georgieva's statement on a social network.

As reported, the IMF mission is paying a working visit to Ukraine on May 19-23 for the 8th review of the Extended Fund Facility (EFF) and the evaluation of Ukraine's fulfillment of its obligations under the EFF arrangement.

Mobilization of domestic revenues was is high on the agenda of the recent reviews of the arrangement, which was launched in March 2023 and would expire in 2027. The IMF forecasted a decrease in Ukraine's budget deficit from 19.6% of the GDP this year to 10.1% of the GDP next year in the EFF arrangement updated after the 7th review.

A number of experts believe that the goal of almost halving the budget deficit would require reducing military expenditures by approximately the same amount.