The IMF is standing with the Ukrainian people

David Lipton, the IMF's First Deputy Managing Director

The reform plan of the Government of Ukraine and actions of the authorities on their implementation have the IMF’s support. 

David Lipton, the IMF's First Deputy ManagingDirector, told this during the presentation "A Conversation with the IMF's First Deputy Managing Director David Lipton on Ukraine" held on April 7, 2015 at the Peterson Institute forInternational Economics. 

During the presentation Mr. Lipton spoke about the ways Ukrainian authorities are responding to the crisis in the country - both the immediate efforts tostabilize the situation and the longer-term program to restore growth and transform the economy, and why the IMF stands with Ukraine in this time of economic crisis. 

He noted that responding to the challenges faced by the economy of Ukraine, the government put together an impressive reform blueprint building on its existingmacroeconomic program and extending its structural reform effort which the IMF has supported with a new program approved by the Executive Board on March 11, 2015.

During his speech, Mr. Lipton spoke about the ways Ukraine is aiming to stabilize its finances, in particular by restoring stability to the foreign exchange market andaddressing the uncertainties that come from the debt burden, and the need to resume growth by restoring the competitiveness that was undermined by an overvalued exchange rateand bringing the banking system back to health. 

“The combination of exchange rate depreciation and flexibility at the hryvnia’s new level is an important step. It is creating the basisfor Ukrainian businesses to compete again on international markets,”  - David Lipton said.

He also mentioned long-term challenges the government has already started to address, such as elimination of the key structural impediments in the banking system and aset of needed reforms affecting the business climate. 

He also pointed out the government’s commitment to tackle corruption by addressing this issue with strengthened anti-corruption legislation and the recent steps to curb the influence of Ukraine’s oligarchs. 

“This is an expansive and complex reform effort. Clearly, it will take time and effort toachieve. It is also inevitable that questions will arise about whether the agenda will continue to have the support of the Ukrainian people, particularly those who have beenhardest hit by the crisis,” – Mr. Lipton pointed out.

At the end of the presentation Mr. Lipton stated that the Fund’s job is to support members in crisis provided they are trying to put themselves right. 

“That goal may be hard,but it is not unrealistic. To achieve it, Ukraine must pursue its reform program, and the international community must support that effort. 

The government has the right plan and the determination to follow through. The program has the backing of the Ukrainian people. So it is only right that we are standing with them,” – he added.

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