The International Monetary Fund (IMF) does not plan to consider restructuring Ukraine’s debt in 2024, according to IMF spokesperson Julie Kozack at a briefing for journalists.
She reports that the IMF regularly reviews Kyiv’s debt burden under the existing financing programme and currently considers it stable provided that the fiscal consolidation programme continues and external financing is maintained.
In addition to a number of questions at the briefing, the issue of Ukraine and the ongoing impact of the crisis in Ukraine on the global economy was also addressed. A correspondent asked: “According to some experts citing debt sustainability analysis of Ukraine conducted by the IMF during the third review, the Fund may write-off Ukraine’s debt by about $15 billion this year. Are there any such plans in the IMF?”
Julie Kozack reported: “Ukraine’s debt was deemed to be sustainable on a forward-looking basis under three conditions: One is continued fiscal consolidation as outlined under the programme. The other is the continuation of substantial concessional financing, again, as consistent with the programme, and debt restructuring. Importantly, the perimeter of debt restructuring encompasses official bilateral debt and external commercial debt. It does not include multilateral debts, including, of course, those of the IMF. So, there are no such plans for – with respect to your specific question.”
The issue of budgetary assistance to Ukraine is expected to be raised at the Spring Meetings of the IMF and World Bank governing bodies, including during the finance ministerial meetings. The 2024 Spring Meetings will be held in Washington from 15 to 19 April. Press briefings scheduled throughout the week will feature the latest World Economic Outlook, the Global Financial Stability Report, the Budget Monitor, and regional reviews. A full schedule and in-person registration is available on the Spring Meetings website.
So far, Kyiv has received about $5.4 billion from the IMF as part of a four-year $15.6 billion EFF programme, according to official statistics.
