The National Bank of Ukraine expects for the positive decision of the Board of Directors of the International Monetary Fund (IMF) on the continuation of the cooperation with Ukraine and supply of the first tranche within new stand-by program until December 25. Yakiv Smol,y, the Head of the NBU, made such statement as Interfax-Ukraine reported.
“The session of the IMF Board of Directors is planned for Tuesday, December 18, during which the Ukrainian issue will be considered. We expect the positive decision on the stand-by program instead of the current EFF program and expect that the next tranche will be supplied after the decision until the Christmas (December 25),” Smoliy said.
Earlier it was reported that Ukraine can get new tranche until the end of the year. It is supposed that its sum will make $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), which 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The SBA program has been replaced by the Extended Fund Facility due to the longer need of the balance of payments of Ukraine.