By KYIV. Nov 6 (Interfax-Ukraine) – The mission of the International Monetary Fund (IMF), led by Gavin Gray, begins on Monday discussions with representatives of the Ukrainian authorities on discussions within the framework of the second review of the Extended Fund Facility (EFF), according to a statement by IMF Resident Representative in Ukraine Vahram Stepanyan.
“An IMF mission, led by Gavin Gray, will today start technical discussions with the Ukrainian authorities on recent economic developments as well as fiscal, financial and structural policies to prepare for the 2023 Article IV Consultation and the second review of the IMF Extended Fund Facility (EFF) Arrangement,” he said, not disclosing other details.
Based on the results of previous discussions and the mission visit in late September – early October, the IMF generally assessed the implementation of the program positively, expecting a positive decision on a second review in the first half of December if the agreements are fulfilled.
Gray then said that Ukraine has met all quantitative targets for the second review of the program, set at the end of June, and this is an important starting point. According to him, among the structural reforms, the key ones are the adoption in the coming weeks of a law on the restoration of lifelong financial monitoring of politically exposed persons (PEP), as well as amendments to law No. 8401 on the abolition of the 2% single tax on the resumption of tax audits with the possibility of implementation of a risk-based approach.
Among other issues for the success of the second review, Gray also named maintaining the realistic nature of the state budget 2023 and the state budget 2024, generally positively assessing the bills discussed in the Verkhovna Rada, as well as updating the Affordable Loans 5-7-9% state lending program and further progress on the anti-corruption path, in particular, guaranteeing the independence of anti-corruption bodies.
Since then, the Rada has adopted and the president signed the PEP law, as well as amendments to the 2023 state budget to increase its expenses by UAH 317.1 billion. In the near future, the parliament is expected to consider the bill on the state budget 2024 and the bill on the restoration of tax audits in a new edition.
