The Memorandum of Economic and Financial Policies, approved by the IMF Executive Board on December 18, 2018, provides policies and strategies that Ukraine intends to follow during the 14-months Program, as well as the steps needed to successfully review and receive the next tranches.
The Memorandum sets out fiscal, monetary, and exchange rate policies, as well as policies in the energy and financial sectors, state-owned enterprises’ management, governance, and business climate, aimed at maintaining macro-economic stability and achieving stronger economic growth.
The implementation of these policies set out in the Memorandum will enable the provision of USD 3.9 billion of financial support from the IMF during the program, which will be directed to the reserves of the National Bank of Ukraine. This will strengthen the Ukrainian national currency and enhance stable and predictable investment climate.
The decision to open a new program and grant the first tranche was made at a meeting of the IMF Executive Board on December 18. On December 20, 2018, Ukraine received the first tranche of 1 billion of Special Drawing Rights (approximately USD 1.4 billion) under the program of cooperation with the IMF.Its receipt gave Ukraine the opportunity to mobilize other international financial support. Thus, on December 18, 2018, Ukraine received a USD 750 million financial guarantee from the World Bank. On December 27 Ukraine attracted a loan of EUR 349.3 million provided by Deutsche Bank under this guarantee.
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