The International Monetary Fund plans to send a team to Ukraine in the coming weeks to examine how the country is implementing the reforms attached to its $8.1 billion loan program, IMF spokeswoman Julie Kozack said on Thursday.
Kozack told reporters the upcoming review will place particular emphasis on Ukraine's progress in broadening its tax base and carrying out the reforms the country agreed to under the program. She highlighted the need for Ukraine to raise domestic financing to help meet sizeable financing requirements in addition to support from external donors.
A central objective of the IMF review is bringing more of the informal economy into the formal sector. The IMF cites estimates that Ukraine's informal economy is roughly 45% of gross domestic product, and the mission will assess measures taken to capture a larger share of economic activity within the taxable base.
Under the terms of the program, Ukraine committed to a package of reforms that correspond with its stated goal of joining the European Union. Kozack said these measures are also important for unlocking further external donor assistance.
The loan arrangement is intended to support Ukraine's economy, which continues to face significant financial pressures. The IMF team's on-the-ground assessment will inform the staff's review of whether the country is meeting the program benchmarks and policy commitments required under the agreement.
Details on the precise timing of the mission or the specific items to be evaluated during the visit were not provided beyond the emphasis on tax base expansion, formalization of informal economic activity and mobilization of domestic resources.
What this means
- The IMF review will scrutinize progress on tax and formalization policies tied to the $8.1 billion program.
- Assessing domestic financing efforts will be central to determining how Ukraine balances internal revenue with external donor support.
- Progress on the reforms is linked to both EU accession objectives and access to further donor aid.