IMF Managing Director Kristalina Georgieva said a full support program for Ukraine is “a few weeks away”.
Brendan Smialowski | afp | beautiful pictures
The fund’s CEO, Kristalina Georgieva, told CNBC on Saturday that the IMF is just weeks away from completing a formal assistance program for Ukraine.
This happened a few hours after IMF said on Friday that it has reached a staff-level agreement with the Ukrainian authorities, paving the way for negotiations on a full loan program that will support Kyiv’s economy and further efforts to join the European Union. The plan is currently being approved by the IMF management board.
“Time is not Ukraine’s friend in these unusual wartime conditions,” Georgieva told CNBC’s Hadley Gamble at the Munich Security Conference.
“We talk about a number of weeks, not a very long period of time,” she added when asked about the timeline for making the show.
Ms. Georgieva said that the UN financial agency is confident that Ukraine meets its requirements for fiscal policy, governance, anti-corruption and financial sector stability.
“We have a country where institutions work. Where pensions are paid. Where social services are available. Where the government is very interested in continuing to reform, even when the bombs fall,” he said. she noted.
The show comes at a critical time for Ukraine, which is approaching the one-year anniversary of the Russian invasion on February 24. The IMF estimates that the country may need more than $40 billion in financial assistance this year, even if Ukraine’s economy is forecast to bounce back. growth after a 30% decline in 2022.
“Ukraine really needs the IMF at this very important time,” said Georgieva. “Why? Because the financial need is huge: We put them somewhere between $40-48 billion for this year.”
“And two, because the country needs the policy support that the IMF provides. To run a war economy is no trivial matter,” she added.
Speeding up Ukraine’s EU accession route
As well as supporting Ukraine’s economy amid the conflict, Georgieva said the reforms would also help “accelerate” Ukraine’s efforts to eventually join the EU.
The European Parliament adopted a resolution calling for Ukraine to immediately grant EU membership candidacy on 23 June 2022. The European Council has awarded EU membership candidate status to Ukraine. country on the same day.
“We consider the desire for Ukraine to join the European Union as a priority in our work,” Georgieva said on Saturday.
“They belong there,” she added. “And the Foundation, of course, can help them move faster down that road.”
