Ukraine Capacity Development Fund Launches Operations

The Ukraine Capacity Development Fund (UCDF), a trust fund managed and administered by the IMF, was formally launched Tuesday at an inaugural Steering Committee meeting held in Kyiv. The UCDF will provide substantial resources for the scaling up of technical assistance and training in support of the Ukrainian government’s ambitious economic reform agenda.

The UCDF’s workplan, endorsed Tuesday by the Steering Committee, focuses on core areas of the authorities’ economic and financial reform agenda, well aligned with reforms under Ukraine’s Extended Fund Facility-supported program. These include:fiscal reforms (including revenue mobilization, public financial management, and expenditure policy); monetary policy; financial sector policies; strengthening financial integrity and tackling corruption; strengthening data compilation and dissemination; as well as country-tailored training and technical assistance on macroeconomic frameworks.

This initial workplan amounts to US$27.5 million, with expectations that the target of US$65 million will be reached. Current resources in the amount of US$16.5 million are being provided by the following development partners: The Netherlands, Slovakia, Latvia, Japan, and Lithuania. These resources will help cover IMF capacity development operations over a five-year period (2024-2028).

The meeting was attended by the Governor of the National Bank of Ukraine Andriy Pyshnyy, Minister of Finance Sergii Marchenko, representatives of a number of development partners, as well as staff of the IMF.