Ukraine’s National Bank and IMF negotiate fifth loan tranche
Ukraine and the International Monetary Fund (IMF) discussed the necessary steps to obtain the country’s fifth loan tranche.
The National Bank of Ukraine’s (NBU) press-service reported the results of the meeting between the Ukrainian Delegation, headed by Governor of the NBU Yakiv Smolii, and the IMF’s First Deputy Managing Director David Lipton in Washington.
“Ukraine has made significant progress in stabilizing the economy and capacity-building for growth,” IMF’s First Deputy Managing Director David Lipton stated. “The international situation is promising for reforms now, and that is why it is important not to waste time. We are ready to assist Ukraine in ensuring the success in its reform efforts.”
The Head of the NBU noted that Ukraine is convinced of the inevitability of reforms necessary for macroeconomic stability and the well-being of Ukrainian citizens. These key reasons make it necessary to share a common vision with the IMF for further cooperation.
Ukraine’s Minister of Finance, Oleksandr Danyliuk, thanked the IMF team for its constructive cooperation.
“I am sure that in the near future we will be able to agree on open questions and find common ground,” Danyliuk stated. “Now the Ministry of Finance is working on the budget resolution for the next three years which will enable the continuation of our policy to reduce deficit and debt loads in accordance with the IMF program.”
He added: “Ukraine’s continued cooperation with the IMF is important for investors, and it’s also a prerequisite for Ukraine to obtain financing from the World Bank and for macro-financial assistance from the European Union.”
The NBU is awaiting 2 billion dollars from the International Monetary Fund in 2018. According to the NBU, an urgent strengthening of efforts for continued cooperation with the IMF is critical to maintain the macro-financial stability of Ukraine.
The IMF’s ongoing program for crediting Ukraine’s economy using the Extended Fund Facility mechanism (EFF) started in 2015 and will last until March 2019.
The overall volume of the program’s finances totals 17.5 billion dollars. Ukraine has managed to collect only 8.7 billion dollars of the total amount. The first tranche, in March 2015, was worth 5 billion dollars; the second one, in August 2015, was worth 1.7 billion dollars; the third and fourth ones, in September 2016 and April 2017 respectively, were worth 1 billion dollars each.