December 19, 2022 - the Executive Board of the International Monetary Fund (IMF) discussed a Management approved Program Monitoring with Board Involvement (PMB) for Ukraine.
The PMB, which is based on a macroframework agreed with the IMF, is aimed at helping Ukraine support its macroeconomic and financial stability and catalyze donor financing. The PMB focuses on a targeted set of policy actions to include increased mobilization of state budget revenues, a pickup in domestic debt market, strengthening the financial sector, and improving management transparency and effectiveness in the sector of state-owned enterprises.
"Considering the existence of the macroeconomic framework approved by the IMF, Ukraine hopes that the approval of the program will provide our partners with confidence and optimal conditions to ensure sufficiently rhythmical financial inflows amid high needs of the balance of payments and the state budget,” NBU Governor Andriy Pyshnyy commented on the approval of the PMB. “By approving the program, IMF management has confirmed its strong support for the Ukrainian people in these extremely difficult times of full-scale Russian aggression. The NBU is prepared to fulfill all the commitments undertaken under this program."
In the course of updating the financial sector’s strategy, the NBU together with the IMF staff will develop the principles of conducting asset quality reviews and stress tests of banks. This is one of the structural benchmarks of the PMB for Ukraine. The program envisages a set of measures to contain monetary financing of the budget deficit next year.
The program has a four-month implementation period and does not directly provide for financial assistance. However, it is a necessary prerequisite for transitioning to a new, long-term Upper-Credit Tranche program of the IMF.