Page 27 - Ukraine OUTLOOK 2023

stability and inflation.

“The IMF monitoring programme should lay the basis of our
macroeconomic policy and the foundation for obtaining financing from
other international partners. Also, this monitoring programme should
become a transitional bridge to a full-fledged programme with the IMF,
which will provide funding," Nikolaychuk explained.

Reserves

As of December 1, 2022, Ukraine's international reserves,
according to preliminary data, amounted to $27.951bn (in
equivalent), while at the beginning of November they stood at
$25.244bn, according to data from the NBU released on December 6.

Ukraine has been struggling to maintain enough reserves to keep it at
the level of over three months of import cover, the minimum economists
say is needed to ensure the stability of the national currency. However,
with the transfers to the budget made by the international donors since
September, that level has been reached and maintained at around four
months. Debt relief by Ukraine’s international creditors has also helped.

WIth a heavier debt schedule in 2023 and a collapsing economy things
might be more difficult and economists anticipate reserves falling below
the three-month threshold and for another 25% devaluation in the
hryvnia unless the war ends soon.

27 UKRAINE OUTLOOK 2022 www.intellinews.com