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Ukraine and the International Monetary Fund (IMF) have agreed on a new three-year US$5.5 billion cooperation program.

"I was pleased to note that IMF staff has reached agreement with the authorities on the policies to underpin a new 3-year, SDR 4 billion (about US$ 5.5 billion) arrangement under the Extended Fund Facility," IMF Managing Director Kristalina Georgieva said in a statement after a telephone conversation with Ukrainian President Volodymyr Zelensky on December 7.

"I had a very constructive call with President Volodymyr Zelensky today. During our conversation, I commended the President for the impressive progress that he and his government have made in the past few months in advancing reforms and continuing with sound economic policies. I assured the President of the IMF's readiness to support the authorities' policy agenda to maintain macro-economic stability and lift the economy to a path of higher, sustainable, and inclusive growth, including with a new IMF-supported program," she said.

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This agreement is subject to IMF management approval and to approval by the Executive Board, and effectiveness of the arrangement will be conditional on the implementation of a set of prior actions.

"The President and I agreed that Ukraine's economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests in the economy, and that it is paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions," Georgieva said.

Zelensky, in turn, described his conversation with the IMF chief as "very constructive."

"Our conversation with IMF Managing Director Kristalina Georgieva was very constructive. I am glad that we have reached full understanding and our turbo-mode has been praised by the IMF. I am grateful to the Parliament, the Government and our entire team for their tireless work for the sake of Ukraine. The new program of cooperation with the International Monetary Fund aims to accelerate economic growth, actively eradicate corruption and improve well-being of every Ukrainian," Zelensky said.

The Ukrainian president pledged to continue reforms.

"We are not satisfied with the current rate of economic growth, therefore, in order to accelerate economic growth, we, together with our international partners, will continue reforms to catch up with our neighbors in terms of economic development and prosperity," he said.