IMF to decide on tranche for Ukraine by June 10 – PM Shmyhal

Ukrainian Prime Minister Denys Shmyhal says Ukraine's government expects the International Monetary Fund (IMF) to make a final decision by June 10 on the allocation of the first tranche for Ukraine under a new Stand-By Arrangement (SBA).

"Today we can say an IMF Executive Board meeting will take place by June 10, during which a final decision will be made on Ukraine's disbursement," he said at a government meeting on June 3.

Read alsoIMF's Stand-By Arrangement with Ukraine to be approved soon – phone talk with Zelensky

Shmyhal listed the benchmarks of the new SBA between Ukraine and the Fund. These are transparency of the activities of state-owned banks and state-owned enterprises (SOEs), strengthening of corporate governance of SOEs, an independent Antimonopoly Committee, customs and tax reform, healthcare reform, as well as bringing gas prices to market levels.

"These are the things Ukraine should do both with the IMF and without it. We need this, and this is a movement toward a better life and success in our country," he said.

As UNIAN reported earlier, an IMF staff team led by Ivanna Vladkova Hollar concluded remote discussions with the Ukrainian authorities on May 21 and reached a staff-level agreement on economic policies for a new 18-month SBA.

The new SBA, with a requested access of SDR 3.6 billion (equivalent to US$5 billion), aims to provide balance of payments and budget support to help the authorities address the effects of the COVID-19 shock, while consolidating achievements to date, and moving forward on important structural reforms to reduce key vulnerabilities.

The National Bank of Ukraine predicts the first US$2 billion disbursement from the IMF will arrive in the second quarter of 2020.