The Cabinet of Ministers approved draft letters of intent and memorandum on cooperation with the International Monetary Fund under stand by program, as Ukrainian News reported. The relevant decision was made at the session of the Government on Wednesday, December 5.
Draft letters of intent of the Government and National Bank concerning the IMF and memorandum on economic and financial policy.
The Board Directors of the International Monetary Fund might consider the question on the approval of the new program of cooperation with Ukraine at the session after December 10.
Earlier, it was reported that Ukraine might receive a new tranche from the IMF till the end of the year. It is supposed that the sum will be worth $1,5 billion.
October 19, the Government adopted the decision on the gas price increase by 23.5 percent from November 1. Within one hour after the relevant decision of the Cabinet of Ministers, a statement appeared on the website of IMF that Ukraine and the Fund reached an agreement on a new 14-months-long support program of economic policy Stand-By Arrangement (SBA) that is supposed to replace the Extended Fund Facility (EFF), which is adopted in March 2015 and expires in March 2019.
The Monetary Fund expects that the IMF Council will adopt the program by the end of 2018 under the condition that Ukraine fulfills all agreements. That includes the adoption of the state budget by the Ukrainian Parliament, which corresponds to the recommendations of the Fund.
The credit program for Ukraine in the amount of $17.01 billion was approved by the IMF at the end of April 2014, and the first tranche of Stand-By Arrangement loan in the amount of $ 3.19 billion was granted in early May.
In March 2015, the Board of Directors of the International Monetary Fund approved the allocation of $ 17.5 billion to Ukraine under the 4-year EFF (Extended Fund Facility) program instead of the SBA program.
The SBA program has been replaced by the Extended Fund Facility due to the longer need of the balance of payments of Ukraine.