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Ukraine to get new IMF credit in December 2018, - Prime Minister

The donor agreed to allocate money to Ukraine after the increase of the prices for gas for the population by 23,5%
14:59, 16 November 2018

Open source

The authorities of Ukraine plan to get a new tranche from the International Monetary Fund (IMF) in December 2018. Volodymyr Groysman, the Prime Minister of Ukraine made such statement as Reuters reported.

He added that credit from the IMF will be received when the authorities will finally confirm the state budget 2019. He also promised that he will not be led by the opposition parties, which demand to abolish the increasing of the prices for gas for the population as it is one of the most important conditions of the donor.

Related: 'Why so expensive?' How much does Ukrainian gas really cost?

Groysman noted that the money from the IMF will allow to provide the stability in the country and will help to continue the reforms.

As we reported earlier, on 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.  

Related: Gas getting more expensive, Ukrainians getting poorer

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.

Related: Ukraine's politicians manipulate increase in gas prices in the run-up to elections

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The SBA program has been replaced by the Extended Fund Facility due to the longer need of the balance of payments of Ukraine.

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