IMF praises Ukrainian central bank's policy

"The National Bank of Ukraine (NBU) has skillfully managed monetary policy during a very challenging period. It will be important to safeguard the NBU's independence and for monetary policy to remain focused on containing inflation and rebuilding international reserves within a flexible exchange rate regime," IMF First Deputy Managing Director and Acting Chair David Lipton said after an IMF Executive Board meeting on the Ukrainian issue on Monday, April 3.

In his words, this will also make room for the gradual removal of remaining administrative measures on the forex and monetary markets once introduced to stabilize the hryvnia.

Read alsoIMF approves 4th loan tranche for Ukraine"Impressive progress has been made in rehabilitating the banking system, but efforts need to continue to restore banks' soundness and reinforce their ability to support growth," Lipton added.

He also noted that the recent nationalization of Ukraine's largest bank was an important step to safeguard financial stability. However, it is necessary to ensure repayment of loans in order to minimize taxpayers' costs, and also to complete recapitalization of other banks and eliminate the associated risks.

As UNIAN reported, the IMF Executive Board completed the third review of the Extended Fund Facility and approved the fourth loan disbursement worth US$1 billion.

The receipt of the fourth tranche of the IMF loan is an unprecedented event for Ukraine since the country has earlier suspended the implementation of loan programs at earlier stages, while the IMF halted its financing after the first, second, and once third disbursement.

According to preliminary statements by the Ukrainian authorities, the latest tranche will be added to the NBU's international reserves and is expected to contribute to the stability of the national currency, the hryvnia.