REUTERS
An International Monetary Fund (IMF) mission will arrive in Ukraine next week to hold discussions on the second review under the Extended Fund Facility Arrangement (EFF) in support of the authorities' economic reform program, NBU Governor Valeriya Gontareva said at a briefing on Thursday.
Gontareva said that the issue of a 2016 State Budget, which the mission wants to see, remains unresolved.
As UNIAN reported earlier, the IMF mission visited Kyiv on September 22 - October 2, to hold discussions on the second review under the EFF in support of the authorities' economic reform program.
At the conclusion of the visit, Nikolay Gueorguiev, Mission’s chief for Ukraine, made the following statement:
"The mission held constructive discussions with the authorities on policies needed to complete the second review under the EFF arrangement. Understandings were reached on most issues. However, as the authorities still need more time to fully flesh out their policy proposals for 2016 in some areas, discussions will continue in the coming weeks."
"Following a deep recession, macroeconomic stabilization is gradually taking hold. The exchange rate has been broadly stable, hryvnia deposits are rising, and inflation is receding. Gross international reserves, have increased to $12.6 billion at end-August, and will be further boosted by a recently agreed swap arrangement with Sweden's Riksbank for $500 million. Despite these positive developments, in view of the larger than expected economic decline in the first half of the year, the mission revised down growth projections for 2015 to -11%. Growth is expected to reach 2% in 2016, supported by recovering consumer and investor confidence, improved export performance, and a gradual easing of credit conditions," he said.
UNIAN memo. Ukraine and the IMF are implementing a financial assistance program for Ukraine, designed for four years, under the Enhanced Extended Fund Facility and worth a total of $17.5 billion. Ukraine received the first tranche under the program totaling $5 billion on March 13 - immediately after the approval of the program. The IMF Executive Board approved on July 31 the second tranche of the loan in the amount of $1.7 billion. The funds were settled in the accounts of the National Bank of Ukraine on August 4 and transferred to Ukraine's foreign exchange reserves. The National Bank of Ukraine expects to receive the third tranche from the IMF in mid-November.
Finance Minister Natalie Jaresko said that the third tranche of the IMF tranche would only be used to replenish the country`s foreign exchange reserves.