IMF reveals expectations from Ukraine for provision of another loan

Source : 112 Ukraine

The IMF should approve new credit program on June 5
18:33, 2 June 2020

Open source

The recommendations of the International Monetary Fund from the Ukrainian government, required for getting a new $5 billion credit program, were revealed. They should be approved on June 5, as the Economichna Pravda outlet reported.

The majority of the conditions should be implemented in 2020, and the IMF will monitor them. However, some of the points might be changed.

Thus, in June 2020, the plans for work with impaired assets of the state banks of the National Bank of Ukraine and Council on Financial Stability should be approved and the statute of Naftogaz should be amended until September in correspondence with the principals of the Organisation for Economic Co-operation and Development.

Related: Funds from IMF to be directed to cover budget deficit of Ukraine, - National Bank Head

Besides, the law on the Supreme Council of justice should be amended until September, concerning the procedure of competitions for the selection of the members of the council and the law on banks and banking activity should be amended in the demands for capital structure and capital itself. Besides, the contracts for municipal services should be concluded and the procedure of the switching to another gas supplier should be simplified until September.

It is planned to tighten the procedure of liquidation and debt resolution of associated persons for the Deposit Guarantee Fund. The corresponding amendments to the legislation should also be made in September 2020. The new structure of State Pension Insurance and State Fiscal Service should be developed at the same time.

The launch of these departments as a single legal entity should take place in January 2021. Besides, in March 2021, the audit of the use of the budget of the fund on the fight against coronavirus should take place.

Related: Ukraine’s balance of payments to be saved owing to IMF, - Zelensky

Strana published the full text of the Memorandum between Ukraine and the IMF. This document consists of three parts: Ukraine: letter on intentions, Appendix 1. Memorandum on economic and financial policy and an appendix with tables.

The letter says that thanks to international support, Ukraine succeeded to reach the macro-economic stability and decrease the level of state debt. However, it is noted that country needs extra financing due to the crisis caused by the coronavirus epidemic.

Besides, the authors report about implemented events, which facilitate the support of stability. The letter is signed by Ukraine’s President Volodymyr Zelensky, PM Denys Shmygal, Finance Minister Serhiy Marchenko, and Chair of the National Bank of Ukraine Yakiv Smoliy.

Related: New IMF tranche: What results are we expecting?

Earlier, the team of the IMF workers reached the preliminary decision with Ukraine's government on the new 18-months-long stand-by funding program. The IMF mission in Ukraine was led by Ivanna Vladkova-Hollar.





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