IMF Managing Director Kristalina Georgieva’s Statement to the Financial Community on Ukraine

This article is published in association with IMF.

Washington, DC: Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued the following statement about Ukraine to members of the financial community today: 

“The Ukrainian authorities have done a remarkable job in implementing an ambitious economic reform program supported by the IMF, aiming to sustain economic and financial stability at a time of exceptionally high uncertainty, restore debt sustainability, and promote Ukraine’s advancements on the path toward EU accession. The IMF’s financing for the program totals US$15.6 billion and is part of a broader US$122 billion external support package to Ukraine comprising contributions from both the official and private sector. 

“In line with the program, the Ukrainian authorities’ strategy to restore debt sustainability involves treatments of both official and external commercial debt, coupled with continued external financing on concessional terms and fiscal consolidation. In support of this, Ukraine’s official creditors, as represented by the Group of Creditors of Ukraine (GCU) have agreed to a debt service standstill until the end of the Fund-supported program, and a commitment to deliver a final debt treatment as required to restore debt sustainability by the final review of the program. Ukraine’s external commercial creditors also agreed to a debt service standstill until August 2024. The Ukrainian authorities indicated their intention to complete a debt treatment with their external commercial creditors prior to the end of this debt service standstill. 

“Following several weeks of constructive discussions, the recent agreement reached between the Ukrainian authorities and the Ad Hoc Creditor Committee of holders of Ukraine’s Eurobonds and a set of guaranteed Ukravtodor bonds marks a significant step forward in this strategy. IMF staff assesses the terms of this agreement to be in line with the debt sustainability objectives of the IMF-supported program. The Group of Creditors of Ukraine (GCU) is also of the view that the agreement complies with the comparability of treatment expected by them. Together with the full implementation of the Ukrainian authorities’ restructuring strategy, the successful implementation of this agreement will provide significant debt service relief, creating room for critical spending and supporting growth, and further contribute to Ukraine’s efforts to bring debt burdens to sustainable levels. 

“Taking account of the continuing extremely challenging circumstances, I welcome the Ukrainian authorities’ commitment to remain engaged with creditors, and to be ready to undertake a further restructuring as necessary to ensure debt sustainability is secured by the end of the program. The Ukrainian authorities have demonstrated their capacity to put in place sound policies and pursue an ambitious reform agenda, including a revenue-based fiscal consolidation and structural reforms to support sustained growth. The continued support of Ukraine’s official creditors and donors, and other international financial institutions, together with the participation of bondholders in this debt operation, is critical to the success of this reform agenda.”