Ukraine: Request for Extended Arrangement Under the Extended Fund Facility and Cancellation of Stand-By Arrangement-Staff Report; Press Release; and Statement by the Executive Director for Ukraine

Ukraine needs a new economic reform program to restore stability and lay the basis for robust growth over the medium term. The conflict in the East has pushed Ukraine's balance of payments and adjustment needs beyond what can be achieved under the current two-year SBA-supported program. The economy has been hit hard by the disruption in trade and industrial production, and the subsequent loss of confidence, which fueled capital outflows and led to a sharp exchange rate depreciation. Banks have come under increasing stress, public debt dynamics have worsened, and international reserves have fallen to critically low levels. New financing needs have emerged. Addressing these challenges now requires broader and deeper reforms over a longer horizon, as well as significant new international assistance.