IMF mission starts 5th review of Ukraine programme as Kyiv reshuffles govt

Finance Minister Serhiy Marchenko is expected to retain his position, analysts and lawmakers said

Image
2 min read Last Updated : Sep 04 2024 | 3:25 PM IST
An International Monetary Fund mission began work on Wednesday on the fifth review of its $15.6 billion lending programme to Ukraine amid a major wartime government reshuffle.
The IMF is a key international lender to Kyiv and its four-year programme is a crucial part of a bigger global economic support package to the country, which is gearing up for a third winter trying to fend off Russia's full-scale invasion.
Kyiv is spending about 60% of its total budget to fund its army and relies heavily on financial support from its Western partners to pay pensions and wages to public sector employees and finance social and humanitarian spending.
An IMF statement said a Fund monitoring mission had started policy discussions with the Ukrainian authorities.
President Volodymyr Zelenskiy is reshuffling his government to reset the team ahead of the critical autumn and winter months and six ministers tendered their resignation.
Finance Minister Serhiy Marchenko is expected to retain his position, analysts and lawmakers said.
Marchenko has previously said the government faced an uncovered gap of about 500 billion hryvnias ($12 billion) to fund its defence for the rest of the year.
The government plans to raise taxes and has already implemented other measures, including increasing import and excise duties and borrowing more on the domestic market, to raise extra revenue.
Ukraine also won an agreement from bondholders to restructure and write down its debt.
The successful completion of the IMF review would enable Ukraine to secure $1.1 billion in new financing in the coming months, officials have said.
Ukraine has received about $98 billion in financial aid from its Western partners since the start of the war, finance ministry data showed.Marchenko has previously said the government faced an uncovered gap of about 500 billion hryvnias ($12 billion) to fund its defence for the rest of the year.
The government plans to raise taxes and has already implemented other measures, including increasing import and excise duties and borrowing more on the domestic market, to raise extra revenue.
Ukraine also won an agreement from bondholders to restructure and write down its debt.
The successful completion of the IMF review would enable Ukraine to secure $1.1 billion in new financing in the coming months, officials have said.
Ukraine has received about $98 billion in financial aid from its Western partners since the start of the war, finance ministry data showed.
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Ravneet Singh Bittu

First Published: Sep 04 2024 | 3:25 PM IST

Next Story