The IMF Memorandum allows continuing cooperation under the Extended Funding Facility (EFF) for Ukraine.
The new Memorandum is the result of Ukraine’s success in implementing the reform agenda agreed with the IMF and is based on the second EFF review. Following the review, Ukraine signed the letter of intent to the IMF and the Memorandum on economic and financial policy. These documents describe the policy and strategy to be pursued by Ukraine within the EFF duration from 2015 till 2018. They also list concrete steps needed to pass the third EFF review and to receive the fourth tranche from the IMF.
Complying with the new Memorandum shall make it possible to receive additional 1.3 billion US dollars from the IMF till the end of 2016 which would be transferred to the reserves of the National Bank of Ukraine to strengthen the Ukrainian currency as well as to contribute to the stable and predictable investment climate in Ukraine.
The second EFF review and the release of the third tranche amounting 1 billion US dollars were decided at the meeting of the IMF management board on September 14. The new loan from the IMF made it possible to receive loan warrants from the USA amounting 1 billion US dollars as well as macrofinancial aid from the EU amounting 600 million Euros as well as other financial support from the international partners of Ukraine.
The Extended Funding Facility (EFF) is aimed to strengthen the economic growth of Ukraine and to lay grounds for Ukraine’s self-sufficient development.
For a full text of Memorandum, please follow the link.