REUTERS
Fund spokesman Gerry Rice said the talks on the new EFF worth $5.5 billion are expected to resume once the economy has started recovering from the pandemic.
The focus of talks between the International Monetary Fund 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 $5.5 billion, which the parties discussed in December 2019.
That's according to IMF speaker Gerry Rice, who spoke at a briefing on Thursday, May 7.
"Last December, the IMF had reached an agreement with Ukrainian government on policies to underpin a new three-year arrangement under our Extended Fund Facility. The authorities were still working on the implementation of agreed prior actions when the pandemic hit. So we've been in close contact with Ukrainian government to discuss parameters of a new fund arrangement that would help Ukraine effectively the economic and health impacts of the pandemic," Rice said.
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"There is an ongoing virtual mission discussing policies that could be supported by a stand-by arrangement rather than extended fund facility," added the speaker.
"Given the unprecedented uncertainty surrounding the economic and financial outlook and the need to focus policy priorities on new-term containment and stabilization, negotiations have shifted to this 18-month stand-by arrangement which could provide balance of payments support to reinforce the authorities' response," he said.
"And when there's recovery in place the focus could shift back to address Ukraine's long term structural reform needs to foster stronger and more inclusive growth," the IMF official concluded.
As UNIAN reported earlier, the National Bank of Ukraine predicted the receipt of the first $2 billion tranche from the IMF in the second quarter of 2020.
UNIAN memo. Ukraine and the IMF in December 2019 reached a staff-level agreement on a new three-year extended fund facility in the amount of $5.5 billion. The decision on the new program is yet to be approved by the IMF Executive Board, while no exact date has been scheduled to consider the Ukraine issue, since the country is yet to complete all prior actions for launching the new program.