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IMF mission begins work in Kyiv

The work of the mission in the Ukrainian capital will last until September 19
12:35, 6 September 2018

Open source

The mission of the International Monetary Fund (IMF) headed by Ron van Rooden has begun its work in Kyiv as Interfax-Ukraine reported.

It was also specified that the mission arrived in Kyiv on the eve.

Acting Finance Minister of Ukraine Oksana Markarova noted that the Ukrainian side intends to discuss all current issues with the IMF, including the continuation of the cooperation after the end of the program in March 2019.

Related: Ukraine promised IMF to legalize the gambling business. Would it happen in 2018?

According to her, the successful fourth re-consideration of the Extended Fund Facility (EFF) and receiving of the fifth tranche in the sum of $2 billion will open the way for the attraction of the financing of the state budget on favorable terms with the use of the guarantees of the World Bank in the sum of $800 million and receiving of the macro-financial aid from the EU in the sum of one billion euro.

In his turn, NBU Head Yakiv Smoly noted that the approaching of the prospect of receiving of the IMF financing will positively influence the state of the currency market of Ukraine and will improve the possibilities of the government on the attraction of the debt resources at the international capital markets.

“Arrival of the IMF mission in Kyiv is a step for the reduction of the uncertainty toward the further development of the situation in the Ukrainian economy and improvement of the expectations of the market members,” he said.

Related: What can we expect from the IMF mission in early September?

Earlier Goesta Ljungman, Permanent Representative of IMF in Ukraine claimed that IMF mission will visit Kyiv from September 6 through 19, 2018, to discuss the latest economic developments and economic policy and the following steps, including financial aid. 

“At the request of the Ukrainian authorities, the IMF mission will visit Kyiv from September 6 through 19, 2018, to discuss the latest economic developments and economic policy. The mission will also discuss the following steps including financial aid of IMF for policy support, aimed at the maintaining of macroeconomic stability and economic development towards sustainable and inclusive growth,” Ljungman claimed.

Related: IMF visit is evidence of improvement of prospects of financial aid allocation, - NBU

Ukraine cooperates with the IMF since 1992. Kyiv got nine tranches during this time.

Ukraine partially repaid the IMF under the stand-by program of 2014. Kyiv repaid two tranches - $37 billion and $87 billion.

The loan program for Ukraine in the amount of $17,01 billion was approved by the IMF at the end of April 2014. The first tranche of the stand-by loan in the amount of $3,19 billion was sent to Ukraine at the beginning of May.

Related: Cooperation with IMF is factor of Ukraine's creditworthiness, - Fitch

The IMF Board of Directors approved the allocation of $17,5 billion for Ukraine in March 2015 by the EFF (Extended Fund Facility) four-year program instead of the stand-by program.

The stand-by program was replaced by the “scheme of extended funding” due to the long-term need of Ukraine’s pay balance.

Ukraine received the first $5 billion tranche under this program in March of 2015, the second one – $1,7 billion in August of 2015, the third one - $1 billion in September of 2016, and the fourth one - $1 billion in April of 2017.

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