IMF's Ukraine Capacity Development Fund worth $27.5 mln launched
MOSCOW. Feb 14 (Interfax) - The Ukraine Capacity Development Fund for economic reforms administered by the International Monetary Fund (IMF) has started operations, Ukrainian media reported citing an IMF statement.
"This initial work plan amounts to $27.5 million, with expectations that the target of $65 million will be reached. Current resources in the amount of $16.5 million are being provided by the following development partners, the Netherlands, Slovakia, Latvia, Japan, and Lithuania. These resources will help cover IMF capacity development operations over a five-year period (2024-2028)," the statement said.
The fund's work plan focuses on key economic and financial reforms consistent with reforms under Extended Fund Facility for Ukraine for 2023-2027, including fiscal reforms, including revenue mobilization, public financial management, and expenditure policy, monetary policy, financial sector policies, strengthening financial integrity and tackling corruption, strengthening data compilation and dissemination, and technical assistance on macroeconomic frameworks, it said.
The IMF team led by IMF European Department Deputy Director Uma Ramakrishnan and IMF Mission Chief for Ukraine Gavin Gray, Ukrainian National Bank Governor Andrei Pyshny and his deputies, Ukrainian Finance Minister Sergei Marchenko and his deputies, as well as representatives of Ukrainian government agencies and international development partners attended the inaugural meeting of the fund's steering committee, Ukrainian media reported citing the Ukrainian National Bank and Finance Ministry.
Speaking of results of cooperation with the IMF in terms of technical assistance, Ukrainian Deputy Finance Minister Denis Ulyutin said that technical support focused on reviewing financial indicators and fiscal risks of key state-run companies and as stress-testing their financial indicators under various possible scenarios over the past few months. The review was published in a report on the 2024 state budget fiscal risks. In addition, a medium-term budget-planning mission took place in early December 2023 to forecast midterm budget indicators, while a mission aimed at improving liquidity management took place last year.
The fund's steering committee consists of representatives of donor countries, the IMF, and the Ukrainian authorities. They will provide strategic guidance to the fund, set and approve technical assistance priorities and plans, as well as an annual report.