Finance ministry says IMF loan tranches expected within 2020

Ukraine before the end of the year is supposed to have received all scheduled tranches within the new Stand-By Arrangement signed with Ukraine's main creditor, the International Monetary Fund, Minister of Finance Serhiy Marchenko believes.

That's because Ukraine has been implementing all structural beacons provided for by the IMF cooperation program, Marchenko told a meeting of the parliamentary committee on finance, tax, and customs policy on September 9, according to an UNIAN correspondent.

Read alsoUkraine needs second IMF tranche – NBU Governor"Just yesterday, the latest high-level call was held. We discussed the prospects for the 2021 budget, discussed the key issues that we have to the mission. And we have been in constant communication with the IMF mission over the past month and regarding the audit of the COVID-19 Fund, and utilizing the fund's resources, discussing bills that affect the revenue and expenditure parts, as well as the implementation of our structural beacons, which we must fulfill in accordance with the program," Marchenko said.

Compliance with IMF requirements

The minister says, at the moment, Ukraine is fully complying with the structural beacons enshrined in the IMF cooperation program.

A plan to reduce non-performing loans has already been approved.

"Regarding the tax and customs reform, their reorganization into a single legal entity: now we are at the final stage. In particular, by the end of the month, we plan to approve new structures, having already submitted a new plan for converting the tax service into a single legal entity for approval by ministries and departments," emphasized Marchenko.

Cooperation with IMF

The minister noted that the rest of cooperation steps are also being pursued in full, and expressed hope that in the near future the IMF mission will take a decision on reviewing the cooperation program's progress.

"And we expect to receive the scheduled tranches as part of the IMF loan before year-end," Marchenko said.

Stand-By Arrangement: background

The IMF Executive Board on June 9 approved an 18-month SBA for Ukraine, with access equivalent to SDR 3.6 billion (about US$5 billion, or 179% of quota).

The National Bank of Ukraine confirmed it received the first disbursement worth US$2.1 billion on June 12, 2020.

The IMF said its mission would carry out in September the first review of how Ukraine implements a new 18-month SBA.