The Government of Ukraine has committed to implementing 12 major “structural benchmarks” to receive IMF funding within the current Stand-By Arrangement, which the Fund extended until June 2022.
That’s according to the Memorandum of Economic and Financial Policies, signed by Ukraine and the IMF and released by the Fund on Wednesday, November 24 Ukrinform reports.
“Our policies will continue to focus on addressing the economic and health crisis caused by COVID-19, while maintaining macroeconomic and financial stability, reducing vulnerabilities, and tackling key obstacles to private investment,” the memorandum said.
The document contains a table of 12 "structural benchmarks" that the Ukrainian government undertakes to implement throughout the SBA’s term. Half of them are designed for the end of this year and two more – until the next review of the program, scheduled for March. In addition, the implementation of the other four benchmarks is scheduled for March-April 2022.
In particular, the memorandum says the Ukrainian government undertakes to approve a 2022 budget by the end of November that targets a deficit of 3.5% of GDP. The same deadline is set for reversing the relaxation of eligibility criteria for state representatives in management of state-owned banks.
By the end of December, the Ukrainian government is due to publish the audit of funds spent on the COVID-related spending program, the NBU must approve a plan, which is to be adopted in consultation with the IMF staff, to improve professional capacity of bank supervision. Another "structural benchmark" is to be implemented by the end of this year by the Office of the Prosecutor General of Ukraine – to publish a semi-annual report on outcomes of proceedings against former bank owners withdrawn from the market in early 2014.
By the end of January next year, the government shall adopt a roadmap for taking PrivatBank and Oschadbank to market for partial or full privatization. In February, the Ukrainian government shall adopt a strategy to recover the assets of bankrupt banks. All this is set to be done before the second IMF review of the SBA, scheduled for March, following which the Fund will decide on whether to allocate the next tranche.
Ukraine has pledged to implement four more "structural benchmarks" in the final stages of the program. In particular, by the end of March, the Ukrainian authorities plan to enact amendments to the law on the Special Anti-corruption Prosecutor’s Office and develop a consumer base for gas suppliers required to bill households.
The integrity check of existing members of the High Council of Justice shall be completed by the end of July, and the Supervisory Board of Energoatom shall be appointed.
As Ukrinform reported earlier, on Monday, November 22, the IMF Executive Board decided to extend for six months the Stand-By Arrangement for Ukraine, which was to expire in December, as well as to allocate a loan tranche of almost $700 million.
Ukraine received the funds from the IMF on Wednesday, November 24.