Lithuania’s Decision Will Contribute to the Approval of the IMF Programme for Ukraine
Today, the Government meeting agreed for Lithuania to join the political statement of the Group of Countries, which provides the International Monetary Fund (IMF) with financing assurances for fulfilment of Ukraine’s commitments to the IMF in the future. This is a prerequisite for the IMF’s approval of a USD 15.6 billion funding programme for Ukraine in the near future.
A political statement confirming the readiness of the countries to continue supporting Ukraine and ensuring the country’s capacity to meet its commitments to the IMF is provided by G7 countries, Spain and several other European Union (EU) countries such as Austria, Belgium, Poland and the Netherlands are also considering the possibility of joining the statement.
“Lithuania has consistently supported the struggling Ukraine in various international formats, including financial initiatives. The financing assurances that will enable the approval of a large-scale IMF programme for Ukraine in the near future — is another expression of strong support from Western partners, including Lithuania. The Fund’s programme is important both to respond to Ukraine’s financing needs this year and next year and to strengthen the country’s macroeconomic and financial stability“, notes Minister of Finance G. Skaistė.
The IMF programme will complement other EU and Western partners’ financial support instruments for Ukraine. The programme’s design focuses on strengthening macroeconomic and financial stability in Ukraine and implementing long-term structural reforms. The programme is scheduled to be approved by the IMF Executive Board on 31 March. The scope of the programme is USD 15.6 billion, with a duration of 48 months. Scheduled regular reviews of the programme.
At the end of 2022, the IMF approved a 4-month non-financial monitoring programme for Ukraine covering revenue mobilisation, domestic debt, financial sector and transparency and governance. In February 2023, Ukraine and the IMF reached an agreement that the aforementioned monitoring programme was successfully implemented — all quantitative and indicative targets, as well as structural guidance covering fiscal policy, governance and financial sector have been met. A successful implementation of the monitoring programme opened the door to Ukraine to submit a request to the IMF for a new large scale financial programme.
Last updated: 31-03-2023
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