Ukraine has repaid $375 million to its most important lender, the International Monetary Fund, to service the principal debt under the 2014 Stand-By Arrangement (SBA). On 6 February, Ukraine is scheduled to pay another $87 million of interest payment under the SBA and the ongoing Extended Fund Facility (EFF) program. The National Bank of Ukraine has informed about this, UNIAN reports.
Earlier, the National Bank of Ukraine was expected to repay $7.4 billion on foreign debts in 2018. Nonetheless, Ukraine’s international reserves are not expected to shrink because foreign currency will be replenished due to new disbursements from the International Monetary Fund and other international partners, the placement of Eurobonds and purchases of foreign currency on the interbank market.
Since April 2014, Ukraine and the International Monetary Fund had been implementing a two-year SBA worth $17 billion, under which two disbursements worth $4.6 billion had been given to the country. In March 2015, the Fund approved a four-year EFF program worth $17.5 billion. Ukraine has so far received four tranches cumulatively worth $8.7 billion. The program is expected to come to an end in March 2019.
Ukraine’s international reserves as of 1 January 2018 amounted to $18.81 billion, 21% up from the figure on 1 January 2017. The National Bank expects the country’s international reserves to reach $20.5 billion by the end of 2018.