Groysman estimates work with IMF as hopeful
The Finance Ministry of Ukraine will be ready to report on the work of the International Monetary Fund (IMF) in the nearest future, Prime Minister Volodymyr Groysman said, opening a meeting of the Cabinet of Ministers in Kyiv on Wednesday.
"I estimate the work as very optimistic. We practically settled all the questions at the level of the Ukrainian government and IMF." I believe that the work is quite constructive now," the head of the government said, without specifying firm dates.
As reported, the four-year EFF program for Ukraine totaling SDR 12.348 billion (about $17 billion at a current exchange rates), opened by the IMF in March 2015, originally foresaw quarterly revisions of the program, as well as the issue of four tranches to Kyiv in 2015, with another four in 2016. However, at present the country has received only the first tranche of funds for $5 billion and the second one worth $1.7 billion. The IMF supposed the allocation of funds in 2015 of another three tranches per SDR 1.18 billion each (about $ 1.63 billion) and a decrease in quarterly tranches to SDR 0.44 billion ($ 0,61 billion) in 2016-2018.
At the same time, Ukraine was able to get only the first two tranches and then there was a time gap due to the political crisis and the government change. Negotiations on renewal of funding were resumed after the appearance of a new Cabinet headed by Volodymyr Groysman in April. Initially it was assumed that the third tranche would amount to about $ 1.7 billion, and the IMF Board of Directors will be able to take their decision in June. But due to non-fulfillment by Ukraine of a number of conditions, the terms are constantly postponed, that is why the amount of the tranche loan was reduced to $ 1 billion.
The Ministry of Finance expects a positive decision of the IMF in mid-July, although the agenda of the Board of Directors of the Fund is scheduled until July 13, there is no the Ukrainian issue. The government has to approve the Memorandum of Economic and Financial Policies until this time and submit it to the Fund.
