flickr.com/freeimage4life
The new prime minister and finance minister must confirm their agreement with the terms of the loan program.
Executive Director of Centre for Economic Strategy (CES) Hlib Vyshlinsky says the reshuffle of the Ukrainian Cabinet of Ministers may delay the start of a new three-year Extended Fund Facility (EFF) for Ukraine on the part of the International Monetary Fund (IMF), Ukraine's key lender.
"Even a government reshuffle as such may delay the start of the program, as the new prime minister and finance minister must confirm that they agree with the terms of the loan program," he said on March 5.
According to the expert, the dismissal of the director of the National Anti-corruption Bureau of Ukraine (NABU), if it takes place, may also become an obstacle to the launch of the new program.
"The illegal dismissal of the NABU director will be a violation of Ukraine's obligations earlier fulfilled under the previous program. This will make it impossible to open a new program," Vyshlinsky said.
Read alsoGovernment to continue cooperation with IMF, other lenders – PM
As UNIAN reported earlier, Ukraine's parliament on March 4 passed a resolution to accept Ukrainian Prime Minister Oleksiy Honcharuk's resignation, and the entire Cabinet of Ministers disbanded. Ukrainian parliamentarians voted to appoint Denys Shmyhal as the country's prime minister.
Ihor Umansky became Ukraine's new finance minister.
Ukraine's authorities and the IMF staff in December 2019 reached an agreement on policies to underpin a new three-year US$5.5 billion EFF, while the Fund's Executive Board is yet to approve the program.
Following the trip of IMF experts to Kyiv on February 20-28, the IMF Resident Representative Office in Ukraine reported on a very good progress made in discussions on legislation to support growth and ensure stability in the country, adding that discussions would continue in the coming days.