Finance ministers are gathering in Washington for the annual meetings of the International Monetary Fund (IMF) and the World Bank. The key issue for Ukraine at the meeting is the approval of a new tranche of funding worth $1.1 billion. US officials were optimistic about their support for Ukraine, highlighting its successful reforms and stable cooperation with the IMF.
The following is a summary of an interview with US Deputy Treasury Secretary Brent Nieman for the Ukrainian edition of Voice of America
Ukraine on track for next IMF tranche
US Deputy Treasury Secretary Brent Nieman stressed that Ukraine has done "exceptionally well" in meeting all its structural obligations to the IMF, following the completion of the fifth review of its programme.
The IMF is expected to approve a new tranche of $1.1 billion soon to help maintain the country's macroeconomic stability during the war.
"Ukraine has done a very good job, meeting all the structural benchmarks and indicators that had to be met over the summer. So I think we will approve the review soon and Ukraine will continue to successfully implement the programme", Nimen said.
Reforms key to future development
As well as providing financial assistance, the IMF is also guiding Ukraine on the path of structural reform. An important example of Ukraine's progress is the National Revenue Strategy, which improves the management of state-owned enterprises, increases the transparency of the tax system, and helps overcome the informal economy. These reforms are designed to strengthen the country's economy after the end of external assistance.
Nimen stressed that this partnership will enable Ukraine not only to meet current challenges, but also to prepare the ground for future economic growth.
IMF cooperation with international donors
The IMF plays a key role in coordinating assistance from various donors, including the US and the EU. The Fund's programme helps avoid duplication of funding and ensures the most efficient use of resources.
According to Nimen, "Ukraine has developed its own programme, and the IMF helps with funds and technical capacity to ensure that Ukraine achieves the objectives it has set in the programme through negotiations".
Challenges and outlook to 2024
Ukraine faces serious challenges, including inflation and the destruction of its energy infrastructure, which affect its economic growth projections. However, the US remains optimistic about Kyiv's ability to maintain stability and continue with the programme.
"...if Ukraine continues to work diligently with the Fund and its allies on reforms such as the National Revenue Strategy, it will remain on a positive path", Niemen said.
The role of the United States and Russia's frozen assets
When asked about Russia's IMF membership, Niemen mentioned the negative impact of Russia's aggression on the global economy. He also confirmed that the US was working on a plan to use the proceeds of frozen Russian assets to support Ukraine. The Group of Seven is aiming to make progress in this direction by the end of the year.
"We are working on a mechanism to provide loans of up to $50 billion secured by the proceeds of these assets, and we plan to make significant progress in the coming months", Niemen said.
The meeting could therefore be an important step in increasing economic support for Ukraine and strengthening international coordination in dealing with the aftermath of the war.
Author: Inna Mikhno