The Ministry of Finance of Ukraine welcomes the completion of negotiations with the IMF mission which visited Ukraine on May 10-18 for the second review of the Extended Fund Facility (EFF).
Ukraine and the IMF mission agreed to resume cooperation based on considerable progress made by Ukraine last year in restoring economic stability as well as taking into account recent significant efforts made jointly by the Government, President, National Bank and the Parliament. The parties agreed policies which should be implemented to complete the second review under the Extended Fund Facility. These policies are subject to approval by IMF management and the Executive Board and are a basis for the decision on providing the next tranche to Ukraine.
The Extended Fund Facility is aimed to increase the reserves of the Ukrainian National Bank, to stop the exodus of capital, to enhance the measures taken by the Ukrainian government to stabilize the country’s balance of payments as well as to help Ukraine overcome structural problems in its economy by implementing overdue reforms.
In line with the EFF arrangements, Ukraine has already implemented a number of key reforms in the energy and banking sectors as well as reforms aimed to enhance the independence of the National Bank, to recover the public finance, to transform state-owned companies and to tackle corruption.
Also, key areas for future reforms in Ukraine were agreed. For a successful consideration of the EFF by the Executive Board expected in July 2016, Ukraine should intensify its efforts to entrench financial stability as well as to improve transparency and to ensure the rule of law.
The successful review under the Extended Fund Facility by the IMF will entitle Ukraine to receive the next tranche to increase the reserves of the National Bank of Ukraine, which should strengthen and stabilize Ukraine’s national currency, contribute to establishing a stable and predictable investment and business climate as well as boost economic growth.