The IMF mission will begin reviewing Ukraine's financing program in late May, according to the NBU
The International Monetary Fund (IMF) mission is expected to arrive in the last ten days of May as part of the first review of the new Extended Fund Facility (EFF) program for Ukraine.
This was announced by Andriy Pyshnyy, Governor of the National Bank of Ukraine, during a briefing.
According to him, the upcoming negotiations will continue discussions on fiscal policy and budgetary measures that were previously considered during the spring meetings in Washington.
Pyshnyy noted that a preliminary understanding has been reached regarding the postponement of one of the most sensitive issues—the introduction of a value-added tax for individual entrepreneurs.
“The Ukrainian delegation returned from Washington with the understanding that the sensitive issue related to VAT for individual entrepreneurs has been postponed. I am convinced that further discussions will take place within the framework of the International Monetary Fund mission. We expect that by the end of May, that is, around the last ten days of the month, the relevant work will begin,” the NBU head noted.
At the same time, Ukraine is proposing alternative ways to fill the budget to its international partners, in particular by intensifying efforts to bring the economy out of the shadows. Among the areas already identified are reform of the customs service and improving the efficiency of the Economic Security Bureau.
The National Bank emphasizes that it supports the government’s position on seeking domestic resources for the budget to avoid additional pressure on gold and foreign exchange reserves.
It was previously reported that the issue of potentially introducing VAT for sole proprietors with income exceeding 4 million UAH is being considered as a structural benchmark within the IMF program. The Ukrainian side advocates postponing this measure until at least 2027, citing wartime conditions as justification.
It is also noted that discussions regarding tax changes are proceeding in parallel with negotiations with the European Commission within the framework of macro-financial assistance programs.
As a reminder, the introduction of value-added tax for individual entrepreneurs may be postponed based on the findings of the International Monetary Fund mission.
The Verkhovna Rada has postponed consideration of the bill on the introduction of VAT for individual entrepreneurs in order to work with the IMF to develop a more balanced approach that will not harm small businesses during the war.
Prior to this, Ukraine and the IMF signed a memorandum on a 5% military levy for an indefinite period and VAT for individual entrepreneurs.
