22 October 2016

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IMF okays third disbursement to Ukraine under EFF

Ukrainian President Petro Poroshenko has announced that the International Monetary Fund's Executive Board has approved a third disbursement to Ukraine under the Extended Fund Facility (EFF) program.


"The Fund's decision paves the way to the allocation of U.S. financial aid worth $1 billion, macro-financial assistance worth an additional sum of EUR 600 million from the European Union, as well as assistance from other international financial organizations," the president said in his video address posted on Facebook in the early hours of Thursday, September 15.

In his words, it also opens the window of opportunities for attracting foreign investments in the Ukrainian economy.

"This will allow maintenance of the hryvnia's stability, reinforce macroeconomic stabilization and support the first shoots of economic growth," he added.

The IMF reported in turn that the amount of the third tranche is SDR 716.11 million, which is $1 billion.

"The Executive Board of the International Monetary Fund (IMF) today [September 14] completed the second review of Ukraine's economic program supported by an arrangement under the Extended Fund Facility (EFF). The completion of this review enables the disbursement of SDR 716.11 million (about US$ 1 billion), which would bring total disbursements under the arrangement to SDR 5,444.21 million (about US$7.62 billion)," the IMF said in a statement.

In completing the review, the Executive Board approved waivers for the nonobservance of performance criteria related to net international reserves, non-accumulation of external payments arrears and non-introduction of new exchange restrictions.

"The IMF's positive decision demonstrates that the world recognizes the implementation of reforms in Ukraine and the country is moving in the right direction," Poroshenko commented on the new financing. He called that decision a "high evaluation of economic reforms and our first results and steps aimed at combating corruption, because anti-corruption strategy and practice is also an important criterion by which the IMF decides on crediting."

Russia to vote against IMF loan disbursement to UkraineThe Ukrainian president also called the IMF's resolution a "signal for the aggressor" who "tried to throw sand in the machine" even at a session of the IMF Board of Governors. "Attempts by Russia to undermine the IMF's solidarity with Ukraine and disrupt the decision on the [third] tranche have failed. The Kremlin's operation has not succeeded. Reforms make us stronger and enhance our capability of countering foreign aggression," he said.

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