Ukraine needs $42bn to secure economic stability – IMF director
13 February 2024 16:16
Ukraine needs USD 42 billion to cope with economic challenges and consolidate its current successes. Managing Director of the International Monetary Fund Kristalina Georgieva said this in an interview with CNBC, reports 
“USD 42 billion is what Ukraine needs to consolidate the remarkable progress they have made. Ukraine deserves the IMF’s support. They have collected 36% of GDP in taxes. I don’t know many countries that can do that even without war. They have reduced inflation from 37% to 5%. Their growth is 4.5%. If we do not provide assistance, we risk losing these gains,”
– said the IMF chief.
The IMF mission is currently in Kyiv to prepare the ground for a meeting in Warsaw on 17 February, where the Ukrainian authorities will begin discussions with the Fund’s representatives on the third review of the IMF-supported Extended Fund Facility.
The meeting is to decide whether Ukraine will receive the next tranche of $900 million under the $15.6 billion programme. As we reported earlier, Ukraine wants to prepare additional guarantees for the IMF in case the US aid does not arrive and the IMF raises questions about Ukraine’s solvency.
Will $42 billion be enough?
The announced amount is quite enough for the macroeconomic stability of our country. This opinion was expressed in an exclusive commentary oleg Getman, economist and coordinator of expert groups at the Economic Expert Platform, expressed this opinion in an exclusive commentary.
“Last year, we did not have anywhere near this amount, and it was enough for us with a margin. This year, the situation is a little better. We have GDP growth, additional revenues due to the de-shadowing of a number of schemes, a more stable sea corridor, which should result in more foreign currency and budget revenues in general. Our foreign exchange reserves have increased significantly. So this amount is enough even with a surplus,”
– the expert believes.
IMF lending programme
In March 2023, Ukraine agreed with the IMF on a new four-year loan programme worth $15.6 billion. It is designed in two stages. The first phase, which will last 12-18 months, is aimed at ensuring fiscal, price and financial stability. The second stage involves more in-depth measures aimed at macroeconomic stability, recovery and reconstruction of the country, and economic growth. At all stages, Ukraine should continue reforms, such as anti-corruption and governance, and refrain from tax cuts.
