The Board of Directors of the IMF approved a $5 billion cooperation program with Ukraine. The program is designed for 18 months
This is stated in a message on the website of the International Monetary Fund and in a statement by the President of Ukraine Volodymyr Zelensky.
“The IMF Executive Board approved today a Stand-By Arrangement (SBA) for Ukraine with financing equivalent to 3.6 billion SDRs (about $5 billion. – EP). The approval of the program allows for the immediate allocation of the equivalent of 1.5 billion SDRs (about $2.1 billion),” the message on the fund’s website states.
“Ukraine will receive the first tranche from the IMF in the amount of $2.1 billion. This is $200 million more than originally planned. The new program will help overcome the challenges caused by COVID19. In difficult times, the IMF proves that it is a reliable partner,” Volodymyr Zelenskyy noted.
“The new program should help Ukraine address the challenges associated with the COVID-19 pandemic by supporting the balance of payments and budget, maintaining today’s achievements, and advancing key structural reforms. To provide Ukraine with the opportunity to return to growth when the crisis is over,” the IMF said in a statement.
“Ukraine’s efforts to stabilize the economy over the past 5 years have been strong. However, more reform efforts are needed to ensure strong and inclusive growth,” the fund said in a statement.
IMF Managing Director Kristalina Georgieva also noted Ukraine’s successful steps, but stressed that the implementation of reforms was uneven.
“Sound fiscal and monetary policies after the 2014-2015 crisis led to a sharp reduction in external and internal imbalances in Ukraine. Public debt has declined, inflation has fallen, and international reserves have recovered.”
“While growth has resumed, reform implementation has been uneven, and building a more dynamic and competitive economy will require sustained implementation of structural reforms,” Georgieva noted.
“The program will focus on ensuring medium-term fiscal sustainability, preserving central bank independence and a flexible exchange rate, and enhancing financial stability while recovering the costs of bank decisions,” she added.
