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Ukraine and IMF agree on new Stand-By Arrangement program for $3.9 billion

The cabinet of Ministers one hour prior to the claim of the IMF increased the gas price by 23.5 percent
23:08, 19 October 2018

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Authorized personnel of the International Monetary Fund and Ukraine agreed on a new 14-months support program of economic policy Stand-By Arrangement (SBA), which to change the Extended Fund Facility (EFF) adopted in March 2015 and expiring in March 2019, reads the message on the website of IMF.

‘The new SBA, with a requested access of SDR 2.8 billion (equivalent to US$3.9 billion), will provide an anchor for the authorities’ economic policies during 2019. Building on progress made under the EFF arrangement in reducing macro-economic vulnerabilities, it will focus in particular on continuing with fiscal consolidation and reducing inflation, as well as reforms to strengthen tax administration, the financial sector and the energy sector,’ reads the message.

Related: Naftogaz to transfer 90 percent of its income to public budget

The council meeting will be held after the parliamentary approval of the state budget for 2019 in accordance with the recommendations of the IMF staff and an increase in gas and heating tariffs for households, reflecting market trends while maintaining support for low-income consumers

As 112.international reported earlier, on February 2018, 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). Totally, Ukraine repaid two tranches - $375 million and $87 million. On August 31, Ukraine transferred to the IMF $ 160.3 million in repayment of the principal debt.

Related: IMF forces poverty upon Ukraine, - MP

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The SBA program has been replaced by the Extended Fund Facility due to the longer need of the balance of payments of Ukraine.

Related: Money and concessions - Ukrainian authorities tried to agree with IMF mission

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