Ministry of Finance of Ukraine welcomes today’s decision of the IMF’s Board meeting to provide Ukraine with the second $1.7 billion tranche of its 4-yearExtended Fund Facility (EFF) program. This tranche, expected to be disbursed in the coming days, will be used to replenish Ukraine's National Bank's reserves.
The EFF program is a critical component of the Ministry of Finance’s goal of stabilizing the Ukrainian economy and creating the conditions for a return to growth in 2016. Combined with the deep and ambitious reforms being carried out by the Government of Ukraine, the new tranche will encourage growth in the economyand reassure financial markets both domestically and internationally.
Today’s decision by the IMF’s Board is the result of the progress Ukraine has made in implementing its reform program which is supported jointly by the Government and the IMF. The Verkhovna Rada of Ukraine completed the prior actions required for the release of the second tranche on July 16, 2015 after voting in favour of 4 draft laws. These laws in particular made substantial progress in reforming the public finances, strengthening the protection of depositors’ rights, and fighting corruption.
The second tranche is part of the EFF program totalling $17.5 billion which links progress made on Ukraine’s reform agenda with the disbursement of funding over the 4-year program. The first $5 billion tranche amounting to 30% of the program financing was disbursed immediately after the program was approved by the IMF Board meeting in March 2015.