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IMF delegation arrives in Kyiv for talks with Ukrainian officials

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WorldKyiv Independent

Borrell: 'We can't impose sanctions on third countries that help Russia’

Josep Borrell, the European Union's top diplomat, held a two-day visit to Ukraine to meet with a variety of the country’s top officials in what has now become a regular tour of support. Visiting Ukraine for the fourth time in two years, Borrell has been sharp in urging his domain to do more for Ukraine. As of February, EU members gave Ukraine less than half of the pledged amount, initially due in full by March 2024.

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International Monetary Fund

Ukraine Receives IMF Support But Must Accelerate Reforms

IMF delegation arrives in Kyiv for talks with Ukrainian officials

Dinara Khalilova, The Kyiv Independent news desk

Mon, February 12, 2024 at 1:58 AM MST·1 min read

A delegation of the International Monetary Fund (IMF) arrived in Kyiv for talks with Ukrainian authorities and other stakeholders on strengthening Ukraine's financial capabilities, Vahram Stepanyan, the fund's resident representative to Ukraine, said on Feb. 12.

challenges facing the Ukrainian economy, according to Stepanyan.An IMF team led by Uma Ramakrishnan, the deputy director of the Fund's European Department, will start the talks with a focus on the authorities' economic objectives and the

The team will also reportedly participate in the inaugural meeting of the Steering Committee of the IMF's Ukraine Capacity Development Fund (UCDF) on Feb. 13.
This meeting will gather Ukrainian authorities, development partners, and IMF staff to discuss Ukraine's capacity development priorities and IMF support in this area, Stepanyan said in a statement.

Following these meetings, an IMF mission led by Gavin Gray will begin policy talks with the Ukrainian authorities in Warsaw on Feb. 17 on the third review of the Extended Fund Facility (EFF) Arrangement, added Stepanyan.

The EFF is a four-year funding agreement that will allow Ukraine to access $15.6 billion in financial aid in regular installments.
In December 2023, the IMF authorized the disbursement of another $900 million tranche of funding for Ukraine under the EFF following approval of the second review of the agreement.
The EFF funds are meant to lend Ukraine stability amid the disruptions of war, support the country's postwar recovery, and promote economic growth as Ukraine moves forward on the path to EU membership.

NBU expects mechanism of war risk insurance to come into effect in 2024

IMF team arrives in Kyiv

12.02.2024 10:06

Today, a team of the International Monetary Fund (IMF) is starting meetings with Ukrainian government officials and other partners in Kyiv.

The relevant statement was made by IMF Resident Representative to Ukraine Vahram Stepanyan, an Ukrinform correspondent reports, referring to the recent press release.
“An IMF team, led by Uma Ramakrishnan, Deputy Director of the Fund’s European Department, starts meetings today in Kyiv with the Ukrainian authorities and other stakeholders,” the report states.
The discussions will focus on the authorities’ economic objectives and the challenges facing the Ukrainian economy.

On February 13, 2024, the IMF team will participate in the inaugural meeting of the Steering Committee of the IMF’s Ukraine Capacity Development Fund (UCDF). This meeting will convene Ukrainian authorities, development partners, and IMF staff to discuss the Ukraine’s capacity development priorities and IMF support in this important area.
Following these meetings, on February 17, 2024, an IMF mission, led by Gavin Gray, will start policy discussions with the Ukrainian authorities in Warsaw on the third review of the Extended Fund Facility (EFF) Arrangement.

A reminder that, in December 2023, Ukraine received the third tranche of financing in the amount of about $900 million (SDR 663.9 million) from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) Arrangement.

10.02.2024 03:12

NBU expects mechanism of war risk insurance to come into effect in 2024

In cooperation with partners, the National Bank of Ukraine (NBU) is working to launch a mechanism of war risk insurance. Before June 2024, the regulator is planning to fully develop a draft bill adjusting this mechanism, and hopes for it to come into effect as soon as this year.

The relevant statement was made by NBU First Deputy Governor Kateryna Rozhkova during the conference ‘Finance for Business in Wartime’, an Ukrinform correspondent reports.

“We have finalized and agreed on the concept of creating a mechanism of war risk insurance. It has been a long-term work that we started with the support of the World Bank back in 2022. Today, the concept and the mechanism itself have been approved by our major sector-specific partners, such as the Economy Ministry and the Finance Ministry,” Rozhkova told.

According to Rozhkova, it is a fully functional mechanism, which can be launched as soon as now and will continue to work for many years after the invasion ends, as security risks will persist.

Currently, the concept provides for granting the compulsory insurance against war risks to a certain range of objects, and the list of war risks themselves will be very limited at the initial stage.

“At the first stage, we are talking about direct material losses due to hostilities,” Rozhkova noted.

In her words, compulsory insurance will allow a large number of objects to get involved in this process, which will help to reduce the cost of insurance. Three levels of coverage are expected: domestic insurance companies, government agency, and Western reinsurance companies.

Rozhkova emphasized that, in order to launch the war risk insurance mechanism, Ukraine needs to adopt a special law.

“The World Bank, the European Commission, the European Bank for Reconstruction and Development, and other international partners, including international reinsurance brokers, have already contributed to the development of this mechanism and expressed their full readiness to provide us with all technical assistance when making a bill. […] We are planning to complete this draft bill before June,” Rozhkova explained.

She expressed hope for this mechanism to come into effect as soon as this year.

“It will be that very powerful component, which will allow businesses and banks to feel confident and restore economy,” Rozhkova concluded.