Ukraine expects to receive two tranches from the International Monetary Fund by the end of this year if the fund’s mission visit in September is successful. Oleh Ustenko, the economic adviser to the President of Ukraine Volodymyr Zelensky.
Kyiv. Ukraine. Ukraine Gate – August 12, 2021 – Economy
According to Ustenko, Ukraine is currently continuing cooperation with the IMF on two tracks: on the one hand, in the context of receiving financial assistance in the amount of $ 2.7 billion, on the other – the arrival of the IMF mission is expected in September this year.
“We have fulfilled everything that was promised in this memorandum (under the Stand-by programmed.), We believe that the Ukrainian issue will be brought to the meeting of IMF directors in September,” – said the source.
He noted the successful dialogue between the Ukrainian head of state and IMF Managing Director Kristalina Georgieva. Ustenko also stressed the importance of positive changes within the state, in particular regarding the reform of the judiciary, the development of anti-corruption infrastructure, and increasing the institutional independence of the National Bank of Ukraine.
“We expect one tranche from the International Monetary Fund as soon as the Ukrainian issue is submitted to the meeting of the board of directors, which, I believe, will be immediately after the (visited.) IMF mission. And I would also expect that we will be able to receive additional funding under the Stand-by program, in which we are now … That is, I would expect at least two tranches by the end of the year, “- said Ustenko, answering questions. whether Ukraine can count on receiving an IMF tranche in the event of a successful mission visit in September.
On August 2, the IMF approved the distribution of special drawing rights (SDRs) to support the world economy in the amount of $ 650 billion. Ukraine has been allocated $ 2.7 billion from this unprecedented package – the country should receive them by the end of the summer. The general distribution of SDRs will take effect on August 23, on which day the new SDRs will be transferred to IMF member countries in proportion to their quotas in the Fund. It was reported that the tranche did not need to be returned, as this is a joint solution to combat the effects of the pandemic around the world. Ukraine’s cooperation with the IMF In June 2020, the IMF Board of Directors approved the provision of $ 5 billion for 18 months to Ukraine under the Stand-by Agreement.
The first tranche of the new program is worth $ 2.1 billion. Ukraine received on June 12 of that year. Ukraine hoped that by the end of 2020, the IMF mission would work in Kyiv to assess the grounds for allocating another tranche – by reviewing the program. In December, the IMF mission returned to Ukraine after working three days in a remote format – all scheduled meetings were assessed as going well. On January 11, the mission resumed operations in Ukraine. However, this happened against the background of the “tariff” crisis and the government’s steps to reduce the price of gas for the population amid protests – withdrawal from the gas market, which insisted on the Fund and earned in 2020, and return to price regulation, although as assured in government, not long-term. The expert circle stated that the IMF reportedly reacted to such a step without understanding.
On February 13, the then permanent representative of the International Monetary Fund, Josta Ljungman, stated that the IMF mission had completed its work in Ukraine, which had lasted since January 11. He called the discussion productive but said more progress was needed. The G7 said that a number of measures were needed to complete the revision of the International Monetary Fund’s program for Ukraine, including reform of the High Council of Justice and energy policy measures. As for the next tranche of the IMF, according to the latest reports from the government, Ukraine expects to receive it by the end of the year. Formerly called September. And this would be appropriate because it is in September that Ukraine has peak payments on debts, as pointed out by the NBU.
The current program was preceded by another $ 17.5 billion, four-year Extended Fund Facility (EFF) program for Ukraine, approved in March 2015. The EFF program, in turn, replaced the Stand-By Foundation program provided to Ukraine on April 30, 2014.
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Source: Ukrgate
