IMF Urges Ukraine to Implement Reforms for Loan Success

The International Monetary Fund emphasizes the importance of Ukraine implementing structural reforms to comply with an $8.1 billion loan agreement. Reforms include adjustments to the VAT threshold. Concerns arise from bondholders regarding restructuring terms. The IMF is open to modifying its strategy for debt service payments if necessary.

The International Monetary Fund (IMF) has emphasized the necessity for Ukraine to fulfill the structural reforms agreed upon as part of a recently approved $8.1 billion loan package. On Friday, IMF's mission chief for Ukraine, Gavin Gray, highlighted the importance of adopting tax reforms, particularly involving the value-added tax (VAT) threshold, by March-end.

Meanwhile, Trevor Lessard, the deputy mission chief, noted that the IMF is monitoring reports that some holders of Ukraine's dollar bonds are exploring ways to enhance terms after previous restructuring efforts. These bondholders reportedly feel disadvantaged by the terms agreed upon in a December restructuring.

Although the current loan arrangement does not anticipate additional debt service payments, Lessard assured that the IMF is prepared to adjust its approach if the situation demands it.

(With inputs from agencies.)