The current program of expanded financing (EFF) of the International monetary Fund (IMF) for Ukraine is working and there are opportunities to 2018 to get more than two tranches of financing, said Finance Minister Alexander danyluk.
“The national Bank expects two tranches from the IMF. Hope will get more, it is absolutely realistic,” he said at the final press conference of the Ministry of Finance in Kiev on Tuesday.
According to Alexander Danilyuk, you must successfully complete the current EFF program, and then to start discussing a new program.
“Orientirueshsya on the performance of the Bank, but I don’t see why we can’t get more. My position as a Minister – it is necessary to successfully complete this program. There will be time, will discuss a new program, but now is not the time,” he said .
As reported, the Director of the financial stability Department of the Central Bank Vitaly vavrischuk recently reported that the national Bank remains optimistic in terms of continued cooperation and looked forward to receiving the IMF’s two tranches of the EFF, what is basing its macroeconomic forecast acceleration of Ukraine’s GDP to over 3% by the end of 2018.
“The NBU believes that next year it would be appropriate to begin negotiations on a new program as the current program expires in early 2019 and it is critical for us to maintain the cooperation with the IMF and further”, – stated V. vavrischuk.
Open the IMF in March 2015 the four-year EFF program total amount of SDR12,348 billion (about $17,46 billion at current exchange rates) with the first tranche of $5 billion originally envisioned by the quarterly revision of the program, the allocation in 2015 of three more tranches of SDR1,18 billion and a decrease in quarterly tranches in 2016-2018 to SDR0,44 billion ($0,62 billion). Ukraine was able to obtain a small delay in the second tranche for this program to $1.7 billion in early August 2015, and then there was a long pause because of the outstanding number of conditions, political crisis and change of government.
After the arrival of the new Cabinet, headed by Volodymyr Groisman in April 2016, the negotiations on the continuation of funding resumed, however, the IMF decided to allocate the third tranche of $1 billion only in mid-September, the fourth – 3 April 2017.
In the fourth revision, which opens the way to obtain the fifth tranche, the IMF still continues to explore the Verkhovna Rada adopted the law on pension reform. In addition, Ukraine still needs to adopt legislation establishing an anti-corruption court, reform the process of privatization of state-owned enterprises to be transparent and based on market mechanisms, and to adjust domestic gas prices in accordance with the previously approved formula.
The Bank previously announced that in 2018, expects to receive two tranches of the IMF totaling $3-3. 5 billion.