Ukraine and IMF discuss economic recovery, reforms and confiscation of frozen Russian assets
Kyiv • UNN
The Government of Ukraine and the IMF mission discussed further joint steps to restore economic growth, implement reforms, implement the government's action program, confiscate frozen Russian assets, support business, increase military production, and obtain additional funding under the IMF EFF program of $2.2 billion.
The government synchronized with the IMF mission further joint steps to restore economic growth and reforms, the parties discussed the implementation of the government's action program for this year, as well as the confiscation of frozen Russian assets, said First Vice Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko following talks with the IMF delegation, UNN reports citing the Ministry of Economy.
Details
The parties reportedly discussed "the current macro-financial situation, business support programs and further joint steps to ensure economic growth."
"During the meeting, we discussed a number of key areas of activity that the government is currently implementing, including the restoration and decentralization of the energy sector, which is our number one priority, as well as the localization of military production, increasing agricultural production and processing, expanding export opportunities, and supporting the de-occupied territories. We want to stimulate Ukraine's recovery, and the IMF mission's professional expertise helps us find the right solutions," Svyrydenko said.
During the meeting, the parties discussed the implementation of the government's action program for this year, which covers 11 key priority areas of economic development and the ratification of the agreement between Ukraine and the EU on a four-year EUR 50 billion Ukraine Facility financing program.
The next topic for discussion was the creation of the Strategic Investment Council, which should form a single project portfolio of public investments, increase their efficiency, and develop proposals for improving domestic legislation.
Localization of military production was also an important topic of discussion during the meeting. "Today, Ukraine produces more and more weapons, but the budget is not always enough to purchase them. That is why we discussed the possibility of purchasing Ukrainian-made weapons at the expense of international partners. Such cooperation could further increase Ukraine's GDP by 2-3%," the Ministry of Economy said.
It is also reported that the issue of supporting small and medium-sized businesses was raised. In this context, the parties discussed the modernization of the business support program "Affordable Loans 5-7-9%."
"We are currently working on a new program to support small and medium-sized businesses to further improve their efficiency. We have to focus on supporting the defense industry, agriculture and processing, as well as on supporting the de-occupied territories. We are now looking at business support through the prism of creating new jobs and increasing our contribution to the creation of additional GDP," Svyrydenko continued.
The parties discussed the possibility of involving IMF experts in the expansion and modernization of the government's "eHouse" soft loan program. It is noted that as of today, more than 10 thousand families have already taken advantage of the opportunity to take out a preferential mortgage. But about 40 thousand more families are waiting for their turn.
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"A separate topic of the meeting was the discussion of combining the efforts of the government and the IMF to take joint action to confiscate frozen Russian assets. The parties also touched upon the government's reform plan by the end of this year and discussed the possibility of increasing funding for new investment projects in the energy sector," the Ministry of Economy said.
Addendum
The current meeting with representatives of the IMF mission took place on the eve of the start of their work on the fourth revision of the EFF program, which will allow Ukraine to attract $2.2 billion, the Ministry of Economy said.
In total, since the beginning of the full-scale invasion, Ukraine has received $8 billion from the IMF. The Fund is one of Ukraine's three largest donors and keeps the total aid to Ukraine at over $120 billion.
