Zelensky's advisor explains delay with IMF tranche

Ukrainian President Volodymyr Zelensky's economic advisor Oleh Ustenko says Ukraine has not yet received the next tranche from the International Monetary Fund (IMF) since there are a number of technical issues that need to be addressed, including those related to the 2021 national budget.

"There is no pause in cooperation: all negotiations with the IMF are underway, and our finance minister is in contact, as well as head of the National Bank, and  prime minister. There is an ongoing working process. It is impossible to bring all negotiation details out to the public but we can definitely say we're not on pause. We are still to receive the tranche as there are a number of technical issues that need to be addressed, including those related to next year's national budget. So there is a lot of attention to the budget and the amendments being made," he told Ukraine 24 TV channel.

Also, according to the economist, there are other reasons why Ukraine cannot receive the tranche sooner.

"As for the rest of the agenda, it's not directly of an economic nature, but it affects the opportunity to first have an IMF mission come sooner and then to receive a tranche – these are changes we will have in relation to Ukraine's anti-corruption agencies. A normal logical process is underway there," he said.

According to Ustenko, the process of getting the IMF money is taking longer than previously expected, while remaining the most viable option for Ukraine.

Read alsoCentral bank chief tells of main issues in IMF talks"A question arises related to financing the budget deficit for this year. We need to get money somewhere. The alternative to the IMF is to enter foreign markets and borrow very expensively. I hope this is not the option for our Finance Ministry, therefore [Finance] Minister [Serhiy] Marchenko is actively speaking up for getting a mission come as soon as possible and then a tranche from the IMF," he said.

Ukraine-IMF cooperation: Latest

• The IMF's Executive Board on June 9, 2020, approved an 18-month Stand-By Arrangement for Ukraine with funding equivalent to SDR 3.6 billion (about US$5 billion), aimed at helping Ukraine overcome the consequences of the COVID-19 pandemic.
• On June 12, Ukraine received the first disbursement of the IMF loan worth US$2.1 billion under the new 18-month cooperation program between Ukraine and the Fund.
• The Finance Ministry plans to receive the second disbursement under the new program by year-end.
• Ukrainian Prime Minister Denys Shmyhal on September 2 announced that a letter had been sent to the Managing Director of the International Monetary Fund, Kristalina Georgieva, offering that the review mission works in conference mode.