the Executive Board of the International monetary Fund (IMF) has approved a new program to support Ukraine. For the restoration of the balance of payments and the resumption of economic reforms, it will provide $5 billion for a period of 18 months, reported on the Foundation’s website following the Council meeting.
the First part of the money — $2.1 billion — the IMF will list in June, the rest will be split into four tranches. “The new programme aims to help Ukraine to cope with the problems due to pandemic COVID-19 by the balance-of-payments and budgetary support, while maintaining the achievements and promoting a small set of key structural reforms to ensure the resumption of growth, when the crisis is over”, — explained in the report of the Fund the purposes for which it provided credit.
the IMF identified four priority areas, which should be directed credit funds is to mitigate the economic consequences of the crisis and support for Ukrainian households and enterprises, ensuring the independence of the Central Bank of Ukraine and a flexible exchange rate, financial stability through cost recovery banks and progress in governance and anti-corruption. Clarifies that the new agreement between Ukraine and the IMF will replace the 14-month credit that was issued to maintain stability in the country in an election year, the IMF approved it in December 2018.
the IMF estimates Ukraine’s experience in stabilizing the economy in the last five years as “strong”, but the consequences of a pandemic coronavirus has created a “great need in the balance of payments and financing”. According to the managing Director and Chairman of the Foundation, Kristalina Georgieva, “a new standby arrangement will support the authorities’ efforts to overcome the consequences of the crisis.”
“with the support of the world Bank and the European Union will help to meet the large funding needs,” said Georgieva at a meeting of the Council on Ukraine. She noted the risks of a new program to support Ukraine, approved by the Fund and stressed that “critical to reducing economic risk and creating a framework for stabilization and reconstruction” will have to implement policies specified in the agreement.
“Ukraine will shortly receive the first tranche of $2.1 billion. This is 200 million more than originally planned. The new program will help us to overcome the difficulties caused by the COVID-19” — wrote the President of Ukraine Vladimir Zelensky on Twitter.
