Ukraine is a few weeks away from launching a full IMF support program - Geogrieva
Ukraine may need financial support of more than $40 billion this year
In a few weeks, the IMF will finalize a full-fledged support program for Ukraine, IMF Director Kristalina Georgieva said.
Source. She said this in a commentary to CNBC at the Munich Security Conference.
Details. The day before, the IMF said on Friday that it had reached a staff-level agreement with the Ukrainian authorities, paving the way for negotiations on a full loan program to support Ukraine's economy and its aspirations to join the European Union. The plan is now subject to approval by the IMF's management.
"Time is not Ukraine's friend in these extraordinary conditions of war," Georgieva said.
"We are talking about a few weeks, not a very long period of time," she added regarding the timeline for the program.
Georgieva said that the IMF is confident that Ukraine meets its requirements in terms of fiscal policy, governance, anti-corruption and financial sector stability.
"We have a country where institutions work. Where pensions are paid. Where social services work. Where the government is keenly interested in continuing reforms, even when bombs are falling," she said.
According to IMF estimates, Ukraine may need financial support of more than $40 billion this year, even though Ukraine's economy is projected to return to growth after contracting by 30% in 2022.
"Ukraine really needs the IMF at this very critical time," Georgieva said. – "Why? Because the financial needs are significant: we estimate them somewhere between $40-48 billion this year.
"And secondly, because the country really needs the political support provided by the IMF. Running a war economy is not a trivial matter," she added.
In addition to supporting Ukraine's economy in the face of the conflict, Georgieva said the reforms will also help accelerate Ukraine's efforts to join the EU.
"We are making Ukraine's desire to join the European Union a priority in our work," Georgieva said on Saturday.
"They belong there," she added. "And the Foundation, of course, can help them move faster on this path.
Background. As a reminder, Prime Minister Shmyhal announced the government's plans to raise $2 billion from the World Bank and other donors in February.
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