The International Monetary Fund (IMF) mission led by Gavin Gray notes progress following policy discussions with the Ukrainian authorities in Warsaw on March 8-15 on a possible new program supported by the fund but notes the need to continue them in the coming days.

"An International Monetary Fund mission, led by Mr. Gavin Gray, held policy discussions with the Ukrainian authorities in Warsaw, Poland, during March 8-15 on their request for a fund-supported program," Vahram Stepanyan, the International Monetary Fund Resident Representative to Ukraine, said.

"The discussions between IMF staff and the Ukrainian authorities were productive and very good progress has been made towards agreement on a set of policies that could underpin a fund-supported program. Building on this progress, staff and the authorities expect to conclude the discussions in the coming days," he stated.

As reported, Ukraine due to the IMF's unwillingness to immediately allocate significant funding in the fall of last year, requested from the fund the four-month Program Monitoring with Board Involvement (PMB), which the fund approved on December 20.

On February 17, the IMF mission concluded its work in Warsaw, following which a statement was made on reaching a staff level agreement (SLA) on the early termination of this program and the transition to the preparation of a new expanded program involving financing. The agreements reached, which still require approval by the IMF management, opened the way to the start of negotiations on a full-fledged program with the support of the fund.

Kyiv hopes that in the beginning of the second quarter of 2023 the PMB will be replaced by a four-year Extended Fund Facility (EFF) of about $15 billion, which can cover the gap in covering the $38 billion deficit of the 2023 state budget, which now stands at about $5-10 billion.