IMF, Ukraine reach staff level agreement on new SBA over COVID-19 pandemic

10:50, 22 May 2020
Economy
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REUTERS

An International Monetary Fund (IMF) staff team led by Ivanna Vladkova Hollar concluded remote discussions with the Ukrainian authorities on May 21 and reached a staff-level agreement on economic policies for a new 18-month Stand-By Arrangement (SBA).

"The International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff-level agreement on economic policies for a new 18-month Stand-By Arrangement (SBA)," Vladkova Hollar said in a statement at the conclusion of the discussion on May 21.

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The new SBA, with a requested access of SDR 3.6 billion (equivalent to US$5 billion), aims to provide balance of payments and budget support to help the authorities address the effects of the COVID-19 shock, while consolidating achievements to date, and moving forward on important structural reforms to reduce key vulnerabilities.

"This will ensure that Ukraine is well-poised to return to growth and resume broader reform efforts when the crisis ends. The arrangement is also expected to catalyze additional bilateral and multilateral financial support," the statement said.

The agreement is subject to approval by Fund Management and the IMF Executive Board.

Board consideration is expected in the coming weeks.

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