The Executive Board of the International Monetary Fund (IMF) today completed the third review of Ukraine’s economic program under the Extended Fund Facility (EFF). The completion of this review enables the disbursement of $1 billion.
What’s it about?
In March, Ukraine and the IMF reached the staff-level agreement on the Memorandum of Economic and Financial Policies.
This was an important step towards the completion of the third review of Ukraine’s economic program under the EFF. This step allowed Ukraine to receive the fourth tranche which will be credited in international reserves of the National Bank of Ukraine.
The new Memorandum contains policy and the strategy of Ukraine within the EFF programs in 2017-2018. The strategy purpose ensuring economic growth of the country by implementation of structural reforms and creation of conditions for self-sufficient development.
What’s the advantage?
The fourth tranche means that both parties fulfill the obligations. It also means that IMF positively estimates reforms which take place in Ukraine. Increase in NBU reserves will positively affect the stability of the national currency. IMF’s trust is one of necessary prerequisites for involvement of world investors to Ukraine. Continuation of cooperation between Ukraine and the IMF within the Extended Fund Facility confirms Ukraine's commitment to further structural reforms.