Ukraine may receive US$2.7 bln from IMF – NBU governor

Governor of the National Bank of Ukraine (NBU), Kyrylo Shevchenko, has said Ukraine may receive US$2.7 billion from the International Monetary Fund (IMF) to replenish its international reserves as part of IMF Managing Director Kristalina Georgieva's initiative to allocate US$650 billion to restore global economy from coronacrisis.

The official posted the relevant statement on Facebook on April 12 following a meeting with Director of the IMF's European Department, Alfred Kammer.

"We've exchanged views on the initiative of IMF Managing Director Kristalina Georgieva on the additional allocation of the amount in SDR (about US$650 billion), which is aimed at providing additional liquidity to the global economic system by replenishing the IMF member states' international reserves. Given the size of Ukraine's quota (0.42%), our state may receive about US$2.73 billion, which will help to build up gold and foreign exchange reserves and improve, according to our preliminary estimates, the indicator of the IMF's composite criterion for the adequacy of international reserves from the current 91% to about 98%," he said.

Read alsoFinance Ministry reflects on prospects of reaching deal on IMF loanAlso, in the dialogue on continuing cooperation with the IMF, the parties discussed a range of issues, including the part of the program, which is within the National Bank's responsibility.

"I'd like to emphasize that we have no disagreements with the mission experts. Moreover, we have a common vision of the result we seek to achieve," he said.

Shevchenko says the sides also discussed the IMF's initiative on debt relief for Sudan, in particular, the payment of its debt to the IMF by other member states. Such an operation will open the Sudan access to IMF financing programs, and, consequently, to resources for the implementation of necessary economic reforms.

"Mr. Kammer expressed the hope that Ukraine will also join this initiative. The decision will not require payment of real money from Ukraine, the Fund has already made reserves for this, but this issue will require an appropriate decision of the Ukrainian government. Several years ago, Ukraine already took part in a similar operation regarding Somalia," Shevchenko said.

IMF assistance for global economic recovery

The International Monetary Fund is discussing the possibility of allocating Special Drawing Rights (SDRs) in the amount of $650 billion to revive global economy post coronacrisis.

According to IMF Managing Director Kristalina Georgieva, such assistance will provide additional liquidity to the global economic system by replenishing reserve assets of 190 member countries.

IMF and Ukraine

On June 9, 2020, the IMF's Executive Board adopted an 18-month Stand-By Arrangement (SBA) worth SDR 3.6 billion, or about US$5 billion, aimed at helping Ukraine overcome the consequences of the COVID-19 pandemic.

On June 12, Ukraine received the first IMF disbursement worth US$2.1 billion under the SBA.

In late November, the Finance Ministry reported on the successful completion of talks with the IMF on benchmarks of the draft budget for 2021, which was one of the major prerequisites for starting the SBA review.

On January 11, 2021, an IMF mission resumed work in Kyiv, they worked until February 12 but departed without issuing any decision on the SBA review.