IMF unlikely to cover Ukraine’s additional mobilization costs

IMF unlikely to cover Ukraine's additional mobilization costs (photo: Getty Images) © RBC-Ukraine (CA)

Alfred Kammer, head of the International Monetary Fund’s European Department, expects Ukraine to generate domestic revenues to finance the growing costs of war and mobilization, according to Voice of America.

“I always emphasize very clearly that we expect domestic revenues to be generated. Strengthening the economy, structural reforms that support economic activity, and better governance will generate additional tax revenues,” Kammer said.

The head of the IMF in Europe noted that better governance and, in particular, the National Revenue Strategy, which was approved by the government on December 28 to fulfill the conditions of the IMF program, can help generate additional revenues.

He said that the IMF and donors are helping the Ukrainian government during the war to protect vulnerable populations, pay salaries, pensions, etc. According to him, this is exactly what the $122 billion financing program is aimed at.

Mobilization in Ukraine

At the final press conference, President Volodymyr Zelenskyy said that the General Staff was asking for an additional 450-500 thousand people to be mobilized. According to him, this requires a comprehensive plan, which will also address the issues of those who have been fighting for almost two years without a break.

The day before, the Cabinet of Ministers submitted a major draft law on mobilization to the Parliament. It proposes to lower the age threshold from 27 to 25 years, reduce the list of categories not subject to mobilization, send summonses to the military commissariats by email, and other initiatives.

Source: RBC Ukraine