Kiev must prepare for when foreign aid dries up, the fund’s representative has warned
FILE PHOTO: Independence Square in Kiev, Ukraine, September 2023. © Oliver Weiken / picture alliance via Getty Images
Ukraine has to find ways to finance itself, as international support will dwindle, the head of the International Monetary Fund’s (IMF) mission in the country has warned.
In an interview with NV Business outlet, Gavin Gray suggested that Kiev focus on collecting more taxes.
“Everyone understands that over time international support for Ukraine will decrease, so the country needs to develop internal resources for self-financing. The authorities should focus on strengthening the capacity to collect revenues – both tax and customs,” Gray told NV Business on Monday.
Ukraine will need more tax money to finance its increased social expenditures after the conflict in the country ends, he added.
In March, the IMF approved a four-year program to issue $15.6 billion in loans to Kiev. Two tranches of over $3.5 billion have already been given.
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According to the IMF representative, Kiev needs to implement a raft of tax reforms to fulfil the conditions for aid set by the fund, such as business tax audits and changes to the law on combating money laundering and terrorist financing.
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