IMF to decide on next tranche for Ukraine on Nov 22
The Executive Board of the International Monetary Fund (IMF) plans to consider the issue of the First Review under the Stand-by Arrangement for Ukraine on November 22.
According to Ukrinform, relevant information was published on the IMF's website.
As reported, the International Monetary Fund and the Government of Ukraine reached a staff-level agreement on policies to support the country's reforms in the context of the Stand-by Arrangement (SBA). This paves the way for consideration of the first review of the Stand-By Arrangement (SBA) and request for an extension of the program by the IMF's Executive Board. Completion of the first review would enable disbursement of SDR 500 million (about $700 million), according a press release issued by the IMF on October 18.
At the same time, it was noted that the IMF and Ukraine reached the agreement on "an updated set of economic, financial, and structural policies to help address the economic and health crisis caused by COVID-19."
The updated program focuses on five main directions.
Firstly, it focuses on returning fiscal policies to settings consistent with medium-term debt sustainability while protecting the socially vulnerable, strengthening revenue administration, and reducing fiscal risks.
Secondly, it is about safeguarding central bank independence and focusing monetary policy on returning inflation to its target.
Thirdly, it focuses on ensuring banks' financial health, including through good governance, with the goal of reviving sound bank lending to the private sector.
Fourthly, it focuses on tackling corruption and pushing forward with the implementation of judicial reform.
Fifthly, it focuses on reducing the role of the state and vested interests in the economy to improve the business environment, strengthen corporate governance, attract investment and raise the economy's potential.
The IMF approved on June 9, 2020 an 18-month Stand-By Arrangement (SBA) for Ukraine worth about $5 billion with the immediate disbursement of $2.1 billion as the first tranche.
