On July 16, representatives of the IMF arrived in Kyiv. Together with the Ukrainian government, they discussed the budget and taxes for the coming years. Several scenarios were considered – from the best to the worst. Is the world ready for a war that could last for years, and what can Ukraine expect? Read more in the article.
In focus – half a year
RBC-Ukraine reports that the IMF’s Resident Representative in Ukraine, Vagram Stepanyan, made an important statement. He announced that the IMF team of experts led by Gavin Gray is starting meetings today in Kyiv with representatives of the Ukrainian government and other partners.
Gavin Gray has been the Head of the IMF in Ukraine since the fall of 2022 and previously worked on the recovery of post-war Iraq’s economy. He is a citizen of the United Kingdom but known for his dedication to Ukraine and experience in crisis economics.
The team of experts, together with Ukrainian representatives, will discuss Ukraine’s tax and budget plans for the second half of this year and for the medium-term perspective.
What if the war continues for a long time?
In March 2023, Ukraine signed an agreement with the IMF for an EFF program worth $15.6 billion. Five tranches have already been received, totaling around $7.6 billion, including $900 million in March and $2.2 billion in July. In 2024, Ukraine could receive two more tranches of $1.1 billion in October and December.
In addition, Ukraine has received political commitments from partners for the allocation of $122 billion by 2027. However, the IMF has also prepared a negative scenario in case of a protracted war, under which the total funding could increase to $140.7 billion. This could prevent the country from defaulting, although commission representatives hope that such extreme measures will not be necessary.
