The Program Monitoring with Board involvement (PMB) for Ukraine (PMB), finally approved by the International Monetary Fund (IMF) on December 19, if successfully passed next March, may be replaced by an extended program with funding, IMF Alternate Executive Director Vladyslav Rashkovan has said.

"We hope to have the extended program in March that will already be part of the reconstruction process and will help build a macroeconomic framework for other donors," he said at the annual conference of the Professional Government Association (PGA).

Rashkovan explained that the approved PMB contains conditions that should demonstrate to other donors and partners that Ukraine is able "not only to fight Russia during the war, but also in such difficult conditions to introduce changes in its policy to make macro-corrections, bring the economic situation more in order, reduce the budget deficit, not allow monetary funding next year, work more with donors."

"The level of uncertainty is very high, but the program is for four months, during which we must show that Ukraine is capable of implementing complex programs," Rashkovan said.

According to him, unlike many other international financial institutions (IFIs), the IMF is not a development bank, but "works to create a macroeconomic framework in which something can be planned" and which will be outsourced to other donors and lenders. It's about control over macroeconomic, budgetary, fiscal, monetary policies, he said.

"So that the IMF can reassure them that the government will pursue policies that can support reconstruction," he said.

Speaking about the Ukraine Recovery Plan, Rashkovan called for stopping talking about big estimates of its cost – $350 billion, $750 billion, $1 trillion, and focusing on smaller, but specific pilot projects.

"We need to stop talking about such big money, it does not attract anyone. It only creates a very big fear that it is very big money that no one can find. Therefore, we need to start small pilots for the reconstruction of small towns – Makarov, Borodianka, Hostomel," he said.

According to him, the Hostomel recovery project, according to KSE estimates, could cost $350 million.

Rashkovan added that he does not believe in a "grand Marshall Plan for Ukraine" because it is a different financial assistance infrastructure in the world, but believes in coordination, in which Ukraine's participation is key.

At the same time, he urged "to trust and love the institutions," referring to the creation of a restoration institution as an implementation mechanism with the participation of the experience accumulated in the world of such institutions, preferably as non-politicized as possible.

"Without institutions, we won't be able to build anything: this is not the business of a few people who will decide reconstruction processes on their knees, but thousands and thousands of projects for many years across the country," he said.

According to him, a vision of the country after the war is also necessary, since there are not even estimates yet of how many people – 35-45-55 million – need to be targeted, and this is important for infrastructure projects.

In addition, Rashkovan called for the active involvement of non-governmental organizations, such as the RISE coalition, in the process to help with the development and implementation of programming, strategizing, planning, budgeting, oversight, control, reporting, audit and other mechanisms that will be necessary for thousands of projects in Ukraine.