The IMF insists on a gradual devaluation of the hryvnia
The International Monetary Fund insists on a gradual devaluation of the hryvnia to improve the state of public finances. However, this move could create tension between Kyiv and the IMF.
A new credit program for Ukraine
If a new loan agreement with the IMF is concluded, which could amount to 8 billion dollars, Ukraine has the opportunity to receive additional financial assistance. However, the regulator and the National Bank of Ukraine have discrepancies in their approaches to monetary policy.
'Such a decision may provoke a new wave of price pressure and undermine public trust in financial stability,' warns the National Bank of Ukraine.
IMF forecasts for Ukraine
According to the updated October World Economic Outlook, the IMF forecasts growth in real GDP in Ukraine and has adjusted its assessment of the dynamics of public debt.
'The Fund's economic forecasts are based on the assumption of continued hostilities until 2026,' noted an IMF representative.
The IMF also emphasizes the need for structural reforms in Ukraine to prepare for debt restructuring and Eurointegration processes.
During negotiations with the IMF, issues are raised about the gradual devaluation of the hryvnia, a new credit program for 8 billion dollars, and forecasts for Ukraine's economic development based on the continuation of hostilities until 2026. The need for structural reforms to enhance the country's financial stability is emphasized.