The mission of the International Monetary Fund (IMF) began work on the fifth review of its loan program to Ukraine, in the amount of 15,6 billion dollars, in the midst of a major reconstruction of the Government during the war.
The IMF is a key international creditor to Kyiv and its four-year program is a key part of a larger package of global economic support for the country, which is preparing for the third winter of defense against a full-scale Russian invasion, reports Klix.ba.
Kiev spends about 60 percent of its total budget to finance the military and relies heavily on financial support from its Western partners to pay pensions and salaries to public sector employees, and finance social and humanitarian needs.
The IMF's announcement states that the Fund's observation mission has started political talks with the Ukrainian authorities.
The President of Ukraine, Volodymyr Zelensky, is reshuffled his Cabinet to reset the team ahead of the critical autumn and winter months, and six ministers have resigned.
It is expected that the Minister of Finance, Serhiy Marchenko, will keep his position, according to analysts and MPs.
Marchenko previously said that the government faced an uncovered deficit of about 500 billion hryvnias, or 12 billion dollars, to finance the country's defense until the end of the year.
The government plans to raise taxes and has already implemented other measures, including raising import and excise tariffs and borrowing more domestically, to raise additional revenue.
Ukraine also received an agreement from bondholders for debt restructuring and write-off.
A successful completion of the IMF review would allow Ukraine to secure $1,1 billion in new financing in the coming months.
Ukraine has received about $98 billion in financial aid from its Western partners since the start of the war, according to data from the Ministry of Finance.
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