Finland pledges EUR one million in support for IMF’s Ukraine Capacity Development Fund

The Ukraine Capacity Development Fund (UCDF) aims to support Ukraine’s policy and reform agenda. The fund supports on macroeconomic stabilisation, post-war reconstruction and Ukraine’s path to EU membership.

Capacity building and technical support are targeted at the National Bank of Ukraine and the Ukrainian Ministry of Finance, among others. The fund’s work programme is based on Ukraine’s needs and has been drafted in cooperation with the Ukrainian authorities.

The goal of the programme is to develop Ukraine’s capacity in areas of public financial administration, managing tax revenue, strengthening policy on the use of funds and combating corruption. The programme also offers tailored training to support the country’s macroeconomic development. In its work, the fund takes into account risks related to climate change and the climate impacts of macroeconomic decisions. Gender equality is integrated to all fund’s activities. With the support of the International Monetary Fund (IMF), Ukraine will be better equipped to analyse and take into consideration the gender impacts of macroeconomic decisions and external shocks.

The programme is in line with the goals of Finland’s Government Report on Finnish Foreign and Security Policy and the Report on International Economic Relations and Development Cooperation that are  the rule of law, human rights, democracy, anti-corruption reforms, transparency and accountability, and strengthening Ukraine’s domestic revenue base.

The Ukraine Capacity Development Fund is managed and administered by the International Monetary Fund (IMF). The IMF promotes sustainable economic development, prosperity and financial stability in its member countries. It monitors the development of the global economy and the economic policies of its member countries by assessing their economic situations on  annual basis. The IMF grants short-term and medium-term loans to countries facing balance of payments problems and provides subsidised financing to low-income countries. The IMF’s main form of support is capacity development, which supports member countries in raising tax revenue, improving general government finances and modernising monetary policy, legislation and administration.