Ukraine needs second IMF tranche – NBU Governor

The central banks and the government are focusing on the implementation of the memo signed with the key donor.

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Ukraine expects more loan tranches from the International Monetary Fund, says Kyrylo Shevchenko, governor of the National Bank.

The NBU hopes to receive the second tranche as early as this year, Shevchenko has told RBC Ukraine.

"At the moment, our fresh macro forecast is built on the assumption that there will be a second tranche this year," Shevchenko said.

Read alsoIMF hopes Ukraine central bank chief will keep the bank's independence – mediaHe added that at the moment the NBU and the government are focusing on the implementation of the memorandum signed with the key donor.

Dialogue with IMF

Ukraine is "successfully moving" along the path of fulfilling Memorandum's provisions, including structural beacons, chief banker said, adding that Ukraine is in constant dialogue with the IMF and other international partners.

Our fresh macro forecast is built on the assumption that there will be a second tranche this year

Dates for new tranches

The NBU chief could not directly answer the question of when the program of cooperation with the IMF will be revised. It was initially set to be reviewed in September.

"Now there's a holiday season. The exact dates will be clear closer to the end of August," the NBU said.

Read alsoUkraine's new chief banker: IMF remains key partnerFirst IMF tranche

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

Ukraine received the first disbursement worth US$2.1 billion on June 12.

The rest of the money is set to be received within 18 months in four installments.

It was reported that the new IMF program aims to help Ukraine cope with the COVID-19 fallout by maintaining balance of payments and budget support, while maintaining achievements and promoting a narrow set of key structural reforms to ensure that Ukraine is ready to return to growth once the crisis is over.

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