18.05.2022

IMF expects early progress in negotiations with Kiev on the next tranche

The National Bank of Ukraine (NBU) says that the IMF is waiting for progress in negotiations with Ukraine on the allocation of the next tranche in the coming days.

“It should be noted that during the briefing, the head of the IMF European Department, Paul Thomsen, positively assessed the NBU’s progress in supporting macro-financial stability and expressed confidence in progress in negotiations regarding Ukraine’s receipt of the next tranche within the framework of financing under the EFF program in the coming days,” the press reported -Service of the National Bank on Saturday on its FacebookFB page, commenting on the work of the annual meetings of the IMF and the World Bank Group, in which the Ukrainian delegation also takes part.

In Washington on October 10-15, an autumn meeting of the IMF is taking place with the participation of the heads of the world’s financial departments and central banks.

According to the press service of the National Bank, on Friday, the acting Heads of the National Bank of Ukraine Yakov Smoliy and Deputy Chairman of the NBU Dmitry Sologub took part in the plenary session of the meeting and held a number of meetings. In particular, a meeting of the regional group of member countries of the IMF and the World Bank, which includes Ukraine, took place, meetings with the head of the central bank of Sweden Stefan Ingves, the special representative of the US president for the global economy and trade Matthew Harsager and a number of other workshops.

“Cooperation with the IMF and implementation of the reform program is the key to macroeconomic and financial stability in the medium and long term. And even more important for the country’s future: the program with the IMF is a path of reforms, without which sustainable and high economic growth is in the interests of Ukraine – to continue to follow the program with the IMF and fulfill the obligations assumed, “Smoliy said.

It is also reported that during a meeting with a representative of the White House, the Ukrainian side informed about the situation in the banking sector and the positive developments that the NBU managed to achieve. For his part, Harsager assured that “the United States will continue to support our country on the path of reforms,” ​​the regulator said.

In addition, the heads of the central banks of Sweden and Ukraine have agreed to continue an ambitious program of cooperation between the countries’ major banks.

The four-year IMF financial assistance program provides for the allocation of $ 17.5 billion to Ukraine. In March 2015, the first tranche of $ 5 billion was transferred, in August of the same year – the second tranche of $ 1.7 billion. In September 2016, the fund transferred the third tranche of a loan to Ukraine in the amount of $ 1 billion. In 2017, Ukraine has received only one tranche of $ 1 billion so far. He entered in April.

Kiev expects to receive the fifth tranche of $ 1.9 billion, but the timing of its receipt is not yet known, since it depends on the adoption of a number of decisions by Kiev as part of the program. The Ministry of Finance hopes for two tranches, the size of which will be discussed with the IMF.

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