The IMF mission works with the Government to launch the Extended Fund Facility (EFF)

Structural reforms, capital mobilization, and corporate governance were among the topics discussed by Ukraine's Minister of Economy, Environment, and Agriculture Oleksii Sobolev on November 17 during a meeting with representatives of the International Monetary Fund mission led by Gavin Gray.

"The International Monetary Fund, together with the Government, is launching a new Extended Fund Facility (EFF) for Ukraine. The programme aims to implement structural reforms in tax policy, corporate governance, procurement, and other areas of the economy. We focused on these key issues during the meeting with the IMF Mission," said Oleksii Sobolev.

In particular, the parties discussed capital mobilization, part of the de-shadowing of the economy, which the Government is working on in consultation with the IMF. The focus is on creating incentives that will help businesses legally bring assets out of the shadows, invest them in the country, and obtain security guarantees. The sides also shared the experiences of other countries in implementing such mechanisms.

One of the key issues during the meeting was the renewal of corporate governance in state-owned companies against the backdrop of the situation with Energoatom. Representatives of the Ministry of Economy, Environment and Agriculture presented their partners an action plan that includes specific steps: changing public representatives on supervisory boards, holding competitions for the positions of CEOs and independent board members, updating the statutes and procedures of the nomination committee, as well as the preparation of the relevant law.

Besides, the participants talked about centralizing some of the functions of supervisory boards, which should be the next step in corporate governance reform. The importance of financial reporting and independent auditing even during wartime was also highlighted.

“These are all important steps for modernizing the economy and rebuilding the country. The new EFF should be an important signal of confidence in Ukraine from international partners and investors,” the Minister emphasized.