On 13 February, the Inaugural Meeting of the Steering Committee of the Ukraine Capacity Development Fund (UCDF) took place in Kyiv. The UCDF finances extended technical assistance to support the implementation of economic reform programs by Ukrainian authorities under the International Monetary Fund’s coordination.
Andriy Pyshnyy, NBU Governor, NBU Deputy Governors, Sergii Marchenko, Minister of Finance of Ukraine, and the IMF team led by Uma Ramakrishnan, Deputy Director of the IMF European Department, and Gavin Gray, IMF Mission Chief for Ukraine, as well as representatives of Ukrainian government, and international development partners participated in the meeting.
“Today’s launch of the IMF’s Ukraine Capacity Development Fund operations in Kyiv marks a key milestone in multilateral efforts to support the Ukrainian government’s ambitious economic reform agenda,” said IMF Managing Director Kristalina Georgieva.
The participants of the Inaugural Meeting of the Steering Committee approved the UCDF’s initial workplan together with USD 27.5 million in financing, which covers technical assistance from the IMF and partners during 2024–2028. Donors such as the Netherlands, Slovakia, Latvia, Japan, and Lithuania are providing USD 16.5 million in current funding. At the same time, the IMF is working to increase the financing budget to USD 65 million.
NBU Governor Andriy Pyshnyy thanked the IMF for coordinating the UCDF’s efforts, and representatives of donor countries for making prompt decisions regarding their participation in the UCDF and their contributions. “The UCDF’s Workplan covers key economic and financial reforms, specifically with regard to regulating the financial sector and monetary policy. Each element of the plan is aligned with the reforms under the EFF program, which will help us to be even more confident and effective in its implementation, and thus ensure the capacity, stability and modernization of Ukraine's economy and financial sector on its way to the EU," said Andriy Pyshnyy in his speech.
“UCDF began its work and is ready to provide assistance to Ukrainian authorities within the framework of the IMF’s capacity development activities. We are confident that it will play a significant role in supporting the implementation of economic and financial reforms in Ukraine, which has demonstrated an extraordinary level of resilience during a full-scale war, - mentioned during his speech IMF Mission Chief for Ukraine Gavin Gray.
As previously reported, in May 2023 the IMF announced a launch of the new large-scale technical assistance program for Ukraine with a five-year horizon. The UCDF Workplan approved by the Steering Committee today focuses on key economic and financial reforms that are aligned with those under the IMF-supported Extended Fund Facility (EFF) for Ukraine.
Key elements of the UCDF Workplan are:
- fiscal reforms (revenue mobilization and public financial management)
- monetary policy
- financial sector regulation
- financial integrity and reducing corruption
- strengthening data compilation and dissemination
- country-tailored training for Ukrainian authorities and technical assistance on macroeconomic frameworks.
UCDF is a trust fund managed and administered by the IMF.
The UCDF Steering Committee includes representatives of contributing countries, the IMF, and the Ukrainian authorities. They will provide strategic guidance, define and approve priorities and TA plans, as well as review and approve the annual report of activities.