The Letter of Intent and Updated Memorandum of Economic and Financial Policies contain the measures and conditions which the Government of Ukraine and the National Bank of Ukraine have implemented and plan to implement within the Program period from 2020 to 2021. It was approved by the Executive Board of the International Monetary Fund on November 8, 2021.
The Memorandum also contains plans for further measures on the implementation of structural reforms in 2022. In particular, reforms in the monetary, fiscal, and financial sectors, which are aimed at improving the business climate and strengthening the rule of law as well as the fight against corruption. Implementation of the relevant measures is necessary to successfully pass the reviews and receive the next tranches of the Program.
Execution of the provisions of the Memorandum will allow receiving the remaining resources from the Fund ($2.2 billion) before the end of the Program to ensure macroeconomic stability.
A further focus of the Stand-by Program will be on supporting macroeconomic and financial stability and cover, in particular, the following areas: fiscal policy, monetary and exchange rate policy, financial sector policy, structural policy (anti-corruption legislation and the rule of law, energy sector reforms, reforming state-owned enterprises - corporate governance and privatization).
The decision of the IMF Board of Directors on the completion of the first review of the Stand-by Arrangement, the allocation of the second tranche under the Program of USD 0.7 billion, and the extension of its duration until June 2022 was adopted on November 8, 2021.