Last week, during a discussion with the Ukrainian authorities of a new mechanism for expanded financing, “very good progress was made,” said Kristalina Georgieva, head of the International Monetary Fund.
To receive a new tranche of a loan, Ukraine must fulfill two conditions. This is stated in a statement by the managing director of the International Monetary Fund, Kristalina Georgieva, which was published on the institution’s website on March 26.
She said that “very good progress” was made last week during a discussion with the Ukrainian authorities of a new mechanism for expanded financing (EFF).
“The adoption of legislation aimed at improving the system of resolving banking problems and land reform will allow us to move forward quickly by finalizing the parameters of a new agreement with wider access than previously expected,” she said.
It is about the adoption of a law that will exclude the possibility of the return of the largest nationalized bank of Ukraine – PrivatBank – to the former owners, as well as the opening of a land market. The government registered the bill on improving some banking regulation mechanisms on March 24, it is now being analyzed by committees, the Rada is considering the bill on the land market in the second reading (according to the Ukrainian Truth, the deputies have to pass 720 amendments).
On March 28, the Verkhovna Rada plans to get together for an extraordinary meeting. The presidential press service said it would be dedicated to “protecting the economy” against the backdrop of the coronavirus pandemic. The source of the GORDON publication in the Rada’s apparatus said that the session’s agenda includes a budget revision and the creation of a stabilization fund. The land market will not be discussed.
On December 7, 2019, Ukraine and the IMF agreed on a new expanded financing program (EFF) for a period of three years in the amount of 4 billion special drawing rights (about $ 5.5 billion). Kiev has not yet received a single tranche under this program.
In addition, Ukraine requested additional funds from the IMF to deal with the consequences of the coronavirus epidemic (Georgieva said the Fund reserved $ 10 billion to help low-income countries).
Sources of Economic Truth reported that Kiev may ask the IMF to increase funding under the EFF program to $ 10 billion, of which $ 4.5 billion will be spent on overcoming the consequences of an outbreak of coronavirus infection.