IMF mission starts discussing new program for Ukraine

A mission from the International Monetary Fund (IMF) has begun discussing a new three-year program for Ukraine that could be supported under the Extended Fund Facility (EFF), the IMF Resident Representative Office in Ukraine has said in a press release, following the mission's visit to Ukraine.

According to the statement, discussions on the new program will continue in the coming weeks.

"The mission has had productive discussions on policies for a new program these last two weeks, especially on fiscal and monetary policies, as well as key reform measures. It also underscored the importance of central bank independence and safeguarding financial stability, as well as the need to make every effort to minimize the fiscal costs of bank resolutions," the IMF said.

The Ukrainian Finance Ministry said on September 26 that negotiations between Ukraine and the IMF on the new program were in an active phase. The ministry noted that a 14-month Stand-By Arrangement currently remained in force. It was developed as a transitional program to promote Ukraine's macroeconomic stability during presidential and parliamentary elections.

The IMF mission arrived in Kyiv in mid-September to discuss cooperation.

Ukrainian President Volodymyr Zelensky said at a meeting with IMF First Deputy Managing Director David Lipton in early July that cooperation with the IMF remained a priority for the Ukrainian authorities.

The National Bank of Ukraine stated that Ukraine should sign a new long-term cooperation program with the IMF for the total amount of $5-10 billion. The first tranche under the new IMF program, according to NBU forecasts, could be transferred by the end of 2019. The NBU expects it to be about $2 billion.

The IMF's previous 14-month Stand-By Arrangement for Ukraine was approved at the end of 2018. It provided for the allocation of three tranches. Ukraine received the first and only IMF tranche under this program on December 21, 2018.

Ukrinform