"The mission has reached understandings with the Ukrainian authorities on the policies necessary for the completion of the first review under the stand-by agreement,"
"In this regard, the authorities have committed to take a number of policy actions prior to the completion of the review. As is usual practice, the understandings reached with the authorities are subject to approval by IMF management while the completion of the review is subject to approval by the Executive Board."
The completion of the review would pave the way for the disbursement of nearly
"All structural benchmarks for the first review have been met as well, although some of them with a delay," Gueorguiev said.
"This is a notable achievement as the intensification of the conflict in the East means that the program has been implemented in an environment that is considerably more difficult than anticipated when it was launched."
Further, the IMF said lower revenue collections in the East, higher security spending, and lower-than-expected debt collection by Naftogaz will cause fiscal and quasi-fiscal deficits and financing needs to rise above the programmed path.
The lender also pointed out that
"The program hinges crucially on the assumption that the conflict will begin to subside in the coming months...a significant prolongation of the crisis would seriously strain their ability to do so without a substantial increase in external support on adequate terms," the
"Fund staff will remain in close consultation with the authorities and their international partners as the situation unfolds."
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