IMF mission ends without decision on Ukraine's SBA review

A mission of the International Monetary Fund (IMF), operating in conference mode, has ended without making a decision on the review of the Stand-By Arrangement (SBA) for Ukraine.

"During December 21-23 and January 11 to February 12, IMF staff held discussions with the Ukrainian authorities on progress in implementing the policies and reforms in the authorities' program supported by the current Stand-By Arrangement. The discussions were productive, but more progress is needed to support completion of the first review under the program. Discussions will continue," IMF Resident Representative in Ukraine Goesta Ljungman said in a press release on February 13.

Read alsoEU says when Ukraine may get another EUR 600 mln in assistanceAt the same time, the IMF representative said "the discussions focused on strengthening governance of the National Bank; improvements to the legislative and regulatory framework for bank supervision and resolution; policies to reduce the medium term fiscal deficit; legislation restoring and strengthening the anti-corruption framework and the judiciary; and energy policy."

Ukraine and IMF: Background

• On June 9, 2020, the IMF's Executive Board adopted 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 tranche of the IMF loan under the SBA worth US$2.1 billion.
• In late November, the Finance Ministry reported on the successful completion of talks with the IMF on the benchmarks of the draft 2021 budget, which was one of the major prerequisites for starting the IMF to start the SBA review.
• On January 11, 2021, the IMF mission resumed its work in Kyiv.
• On February 13, Prime Minister Denys Shmyhal, commenting on the completion of the IMF mission in Ukraine, said Ukraine would continue constructive cooperation with the Fund.