7 Dec 2022 13:50

National Bank of Ukraine expects IMF to approve monitoring program in second ten days of Dec

MOSCOW. Dec 7 (Interfax) - It is anticipated that the International Monetary Fund will approve Program Monitoring with Board Involvement (PMB) for Ukraine in the second ten days of December, Ukrainian media reported, quoting the National Bank of Ukraine as saying on social media.

The NBU said after the meeting between its governor, Andrei Pyshny, and Japan's ambassador to Ukraine, Matsuda Kuninori, that the ambassador welcomed Ukraine's staff-level agreement, or SLA with the IMF regarding the terms of the monitoring program.

They also discussed issues regarding an assessment of banking sector stability in keeping with the terms of cooperation with the IMF, in particular an evaluation of asset quality and stress testing.

Pyshny also said he hoped for Japan's support, as a member of the IMF's board of governors, in the next stages of negotiations with the Fund.

"We very much count on Japan's leadership in 2023 in coordinating G7 efforts to provide international assistance. Ensuring regular and rhythmic external financing is extremely important to maintain our state's financial stability," Pyshny said.

Ukraine is so far absent from the calendar of meetings of the IMF Board of Directors, posted on the IMF website, up to December 16.

Ukraine has requested a four-month IMF monitoring program. Ukraine expects that in early 2023, it will be possible to move from the PMB towards a standard Extended Fund Facility, which would help cover next year's estimated $38 billion budget deficit.

IMF mission head Gavin Gray said on November 23 that a staff level agreement had been reached on Program Monitoring with Board Involvement.