"Performance under the PMB has been strong. Due to the joint efforts of the government ... and the National Bank of Ukraine, all end-December quantitative and indicative targets have been met, as have all five end-January structural benchmarks," the IMF said in a statement. Ukraine is seeking an IMF program of up to $20 billion. As Russia's invasion enters its second year, it faces an estimated total external financing need of $40-$57 billion in 2023.
Among benchmarks met under the policy monitoring arrangement were the government's submission to parliament of draft tax laws aimed at increasing revenues and steps by the Finance Ministry to address arrears, the IMF said.
The Fund said that Ukraine's economy contracted by 30% in 2022, shrinking less than initially forecast, while inflation has begun to decelerate. But Ukraine's near-term economic outlook had deteriorated due to Russian attacks on critical infrastructure.
"However... a gradual economic recovery is expected
through the course of the year," the IMF said.
(Reporting by Andrea Shalal and David Lawder; writing by Paul
Grant; editing by Susan Heavey and John Stonestreet)
