The IMF has reached staff-level agreement with the Ukrainian authorities on a new stand-by program with Ukraine. The arrangement will provide Ukraine with access to IMF financing equal to the equivalent of US$3.9 billion over 14 months.
The new program builds upon the progress of implementation of the IMF Extended Fund Facility in place since March 2015. It will provide a framework for cooperation between Ukraine and the IMF that extends beyond the 2019 Presidential and Parliamentary election cycle, and will assist the authorities in continuing their commitment to current fiscal and monetary policies.
Subject to certain agreed conditions, including parliamentary approval of a 2019 budget reflecting IMF staff recommendations, he IMF board is expected to approve the program by the end of the year.
Following the IMF announcement, the Ukrainian acting Minister of Finance Oksana Markarova said:
“We believe the stand-by arrangement will provide a sufficient safety net for Ukraine as we continue on the path of structural reforms. Ukraine has been growing for 10 quarters in a row, the inflation and the budget are in check, and other macroeconomic indicators show a positive dynamic.
With a realistic and balanced budget as well as the medium-term budgetary planning framework that the Verkhovna Rada passed in first reading yesterday, this new act of support from our international partners is a very welcome development.
The continuing cooperation with the IMF will enable our government to benefit from concessional financings from international financial institutions and continue increasing foreign reserves (currently standing at over USD 16,6 bn).