The Board of Directors of the International Monetary Fund is ready to approve a new economic support program for Ukraine (standby arrangement (SBA)) only after the final revision of the tariffs on heating in compliance with the gas price hike. This information is contained in the preliminary Eurobonds issue prospectus of the Finance Ministry. Interfax-Ukraine has the text of the prospectus.
“The agreement with IMF experts implies that the tariffs for heating should be completely reconsidered given the increase of gas tariffs till the approval of the new programme by the Fund’s Board of Directors,” the document says.
Reportedly, on October 19, the Government decided to increase gas prices by 23,5% since November 1. An hour later, the IMF website informed that Ukraine and IMF concluded an agreement on a new stand-by program for $3,9 billion, which would replace the program expanded funding (EFF), approved in March 2015. It expires in March 2019.
The representatives of the Finance Ministry expect the IMF Board to approve the program will the end of 2018 if Ukraine fulfills all the agreements, including the budget adopted by the Verkhovna Rada which complies with the recommendations of the Fund.