Legislator comments on possible timeline of first IMF tranche for Ukraine

Head of the Financial, Tax and Customs Policy Parliamentary Committee Danylo Getmantsev says Ukraine may receive from the International Monetary Fund (IMF), Ukraine's key lender, the first tranche worth US$1.75 billion within three to four weeks.

"We expect [the first disbursement worth $]1.75 billion in three to four weeks, and then the same amount – by the end of the year," he told journalists on May 13, responding to the relevant question before an extraordinary parliamentary meeting.

According to Getmantsev, "in general, this refers to an 18-month stand-by program worth $5 billion."

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As UNIAN reported earlier, the Ukrainian government expects the talks with the IMF will complete before May 15. According to Gerry Rice, Director of the IMF's Communications Department and IMF Spokesman, the focus of talks between the IMF and Ukraine has shifted toward an 18-month stand-by financing program which will help the country tackle the consequences of the pandemic in the economy and health care. It could serve as a reserve option as Ukraine authorities are yet to fulfill conditions required to receive funds in the framework of the Extended Fund Facility in the amount of US$5.5 billion, which the parties discussed in December 2019.

On May 12, Ukrainian Prime Minister Denys Shmyhal said Ukraine hopes to sign a new memorandum with the International Monetary Fund by the end of May.

Shmyhal has expressed hope that cooperation with the Fund under a new stand-by arrangement, which is being discussed, will let Ukraine get a new US$5 billion loan package. Of the amount, US$3.5 billion is intended to go directly into the 2020 national budget.