Statement following an IMF mission

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Vienna, Austria:
The International Monetary Fund (IMF) Mission Chief for Ukraine, Gavin Gray, issued the following statement today:

“From October 17 to 20, an IMF staff team met with Ukrainian authorities in Vienna, Austria. The mission discussed its findings with Finance Minister Serhii Marchenko and Governor of the National Bank of Ukraine Andriy Pyshnyy.

“The Russian invasion of Ukraine which began over seven months ago has caused enormous human suffering and had a severe economic impact. Real Gross Domestic Product (GDP) has contracted significantly, the inflation rose sharply, trade was significantly disrupted, and the budget deficit reached unprecedented levels.

“In this challenging context, discussions focused on recent macro-financial developments and outlook, the budget for 2023 and associated external financing needs, financial sector issues and the policy mix to support macroeconomic stability. The Ukrainian authorities have the merit of having maintained a significant degree of macro-financial stability in these extremely difficult circumstances. The authorities are encouraged to refrain from measures that erode tax revenue, as they strive to align spending with available financing.

“Building on these productive discussions, staff and authorities will advance work in the coming weeks to respond to the authorities’ request for follow-up to the program with the involvement of the Board of Directors (PMB). The PMB outline the authorities’ policy intentions to support macroeconomic and financial stability and present an assessment of external financing needs for 2023. As such, the PMB will also provide a strong anchor for macroeconomic policies, further catalyze donor support and will help pave the way for a full-fledged Fund program.

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