Canada-International Monetary Fund Technical Assistance - Ukraine

Results achieved by the International Monetary Fund with the support of the Government of Canada as of April 30 2017 2017 include: (1) preparation of a medium-term budget Declaration that was presented to the Ukraine government for the 2018-2020 period. The Declaration includes medium-term aggregate expenditure ceilings for the first time and indicative spending unit ceilings to support more effective resource allocation to meet government priorities; (2) the National Bank of Ukraine completed diagnostics of the next top-40 banks (after having previously completed the first top 20). 98% of total sector assets had gone through the diagnostic exercise capital shortfalls identified and plans to eliminate the shortfalls agreed thereby laying a sound foundation for the development of a well-capitalized and liquid banking sector; (3) a major restructuring of Ukraine’s banking sector which resulted in decreasing the size of the sector from about 120 banks to 60 banks and the nationalization of the country’s largest lender; and (4) draft amendments to the current Ukrainian corporative insolvency law have been completed (these changes significantly improve the current legal framework for insolvency) and were included in a draft bill that was submitted to the Ukrainian Parliament in October 2016 and approved by the Economic Policy Committee of Parliament in November 2016.