EBRD envoy explains why Ukraine only receives four IMF tranches

Source : 112 Ukraine

Ukraine needs to fix issues with the calculation of gas price for households and to create an anti-corruption court.
18:51, 5 February 2018

Francis Malige, EBRD Managing Director for Eastern Europe and the Caucasus, has said Ukraine is considerably behind schedule of the IMF’s funding program, particularly, because of its resistance to certain reforms, UNIAN reports.

Related: IMF-Ukraine cooperation program open to question, - EBRD

In an interview with RBC Ukraine, Malige has said that Ukraine needs to enter the international capital market for further financing, hence, it is necessary to continue reforms. Simultaneously, according to the envoy, the International Monetary Fund is now considerably delaying another aid tranche allocation.

Related: EBRD to support implementation of reforms in Ukraine

After all, according to the timetable, Ukraine should be receiving its 12th tranche. Malige said that Ukraine had received only four tranches while the terms for the next allocation remain unclear. He explained that the country receives every tranche from the IMF once it implements a package of reforms across many areas of affairs.

Related: Cheap nuclear energy secret: What Ukraine owes EBRD?

Particularly, last autumn, Ukraine’s Parliament passed a low on privatization and pension reform, which benefitted the continued cooperation with the International Monetary Fund. At the same time, IMF requirements also make Ukraine fix the methodology for calculating the gas price for households and establish the Anti-Corruption Court.

Related: Groysman discussed reforms and privatization progress with the President of EBRD

According to the EBRD executive, internal resistance to these reforms remains a significant problem for Ukraine. In case such resistance remains, it will be difficult for the country to attract funding from international financial donors, the official said.

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