Ukraine sends Letter of Intent to IMF Managing Director based on the Memorandum regarding economic and financial policy

7/22/15

Ukraine has completed the first review of the Extended Fund Facility (EFF) Arrangement with the IMF. As a result, the Government of Ukraine has sent a revised Letter of Intent to the IMF Managing Director, Christine Lagarde.

Yesterday, President of Ukraine Petro Poroshenko, Prime Minister Arseniy Yatsenyuk, Finance Minister Natalie Jaresko, and Governor of the National Bank of Ukraine Valeria Gontareva, signed a revised Letter. This development leads to the possible appointment of the IMF Board Meeting, which will make a decision on the disbursement of the second tranche of as much as $1.7 billion to Ukraine to replenish Ukraine's National Bank's reserves.

The Ministry of Finance aims to stabilize the Ukrainian economy and to create the conditions for returning to growth in 2016. Combined with reforms carried out by the Government of Ukraine, the new tranche will encourage growth in the economy and re-establish credibility of Ukraine internally as well internationally.

In line with the Memorandum, Ukraine had to fulfill IMF's prior actions and to adopt four draft laws. After the Verkhovna Rada of Ukraine has voted for these draft laws on 16 July 2015 making substantial progress in reforming the public finances, strengthening the protection of depositor’s rights, and fighting against corruption.

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