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Ukraine's key creditor, the International Monetary Fund (IMF) is ready to continue cooperation with Ukraine under the Extended Fund Facility (EFF) program, but expects more clarity from Kyiv about the status of the government and the parliamentary coalition, IMF spokesman Gerry Rice told a general news briefing on Thursday.
He stressed that the reform program that Ukraine has committed to undertake has been outlined in the cooperation program between Ukraine and the IMF, as well as in the draft Memorandum on the second program review, the text of which is being agreed by the Ukrainian government.
The Memorandum was originally planned to be signed and submitted to the IMF headquarters after February 16, when the Ukrainian government was scheduled to present its report on performance to the Ukrainian parliament.
As UNIAN reported earlier, the second review of the EFF program was conducted in two stages. The IMF mission was operating in Kyiv in September, and on October 2 the talks were suspended due to the local elections in the country, as well as ongoing discussions of the tax reform and the draft state budget for 2016. In November, negotiations between Ukraine and the IMF resumed.
At present, Ukraine and the IMF are agreeing a report on the progress of reform implementation and the memorandum on the second program review, while identifying further actions. It is noted that the two sides have been discussing a wide range of issues within the framework of the second program review, which includes various aspects of monetary, banking and anti-corruption policies, the pension reform and the privatization process.
The disbursement of the third tranche is vital for Ukraine as it will help unlock further financial assistance from Ukraine's international partners, including $1 billion guarantee from the U.S. government, and loan funds from the EU and World Bank.
The approval process of the Memorandum has been delayed due to recent reports about possible resignation of the government.
As is known, the IMF on March 11 approved a four-year EFF worth $17.5 billion for Ukraine. The first tranche worth $5 billion under this program arrived in Ukraine on March 13. The second tranche worth $1.7 billion was transferred to Ukraine on August 4.