Press Release No. 22/446

IMF Board discusses Program Monitoring with Board involvement for Ukraine

December 19, 2022

• The IMF Executive Board discussed Program Monitoring with Board involvement (PMB) for Ukraine.
• The 4-month PMB, which has been approved by IMF Management, is designed to help Ukraine maintain stability and catalyze donor financing amid very large balance of payment needs and exceptionally high risks.
• Key measures under the PMB include enhancing revenue mobilization and reviving the domestic debt market, preparing a financial sector strategy, and enhancing transparency and governance .

Washington, DC – The Executive Board of the International Monetary Fund discussed today a Management-approved PMB for Ukraine. [1] This 4-month PMB is designed to help Ukraine maintain stability and catalyze donor financing.

At the conclusion of the Executive Board’s discussion, Ms. Gita Gopinath, First Deputy Managing Director and Acting Chair, made the following statement:

“Russia’s invasion continues to have a devastating social and economic impact on Ukraine. Civilian casualties are mounting, over a third of the population has been displaced, access to basic needs such as electricity, water, and heating is at risk, and the destruction of housing, infrastructure, and productive capacity has been massive. As a result, economic activity has severely contracted, inflation remains high, and public finances are under extreme pressure.

“Notwithstanding all these strains, the authorities have largely managed to maintain macroeconomic and financial stability, and they are committed to continue adapting policies to fast changing circumstances, including in the case of a severe downside scenario. Balance of payment needs remain very large and risks are exceedingly high.

“Against this background, management has approved the authorities’ request for Program Monitoring with Board Involvement (PMB). The PMB is tailored to Ukraine’s exceptional circumstances, to help the authorities implement prudent macroeconomic policies during this particularly difficult period and catalyze donor financing. Large and predictable external financial support will be critical for the success of the authorities’ strategy, and frontloaded disbursements would help address strains in early 2023.

“The PMB focuses on a targeted set of policy actions to support macroeconomic and financial stability. This will require enhancing revenue mobilization, containing monetary financing and therefore reviving domestic debt markets. At the same time, the PMB seeks to promote transparency and preserve hard-won gains from past Fund-supported programs, including in the areas of independence of the National Bank of Ukraine and, more broadly, governance and anti-corruption. Strong implementation of the PMB should help pave the way toward a possible full-fledged IMF-supported program.’’