The IMF Executive Board following the meeting on Tuesday approved a new loan program Stand-By arrangement for Ukraine, which provides funding of $5 billion for a period of 18 months.
The size of the first tranche of $2.1 billion, says the official report of the IMF.
“The IMF’s Executive Board today approved a Stand-By program (SBA) for Ukraine with the financing, equivalent to SDR 3.6 billion (about $5 billion, or 179 percent of quota)”, – stated in the message.
The new program aims to help Ukraine in solving the problems associated with the pandemic COVID-19 by the balance-of-payments and budget support, said the Fund. Thus in expressed hope for the promotion in Ukraine of key structural reforms, to provide a good opportunity to return to growth after the crisis.
“The successful performance of Ukraine in stabilizing the economy over the past five years was powerful. However, you need to exert more efforts for reforms to ensure durable and inclusive growth”, – noted in the IMF.
At the same time, the Fund noted that the policy of the new agreement will focus on four priorities. Among them is mitigation of the economic impact from the crisis, including through the support of the population and business; ensuring continued Central Bank independence and flexible exchange rate; ensuring the financial stability of the reimbursements for solutions Bank. In addition, among the priorities is the promotion of key events governance and anti-corruption with the aim to preserve and strengthen recent gains.
“Approval of the SBA enables the immediate allocation of the equivalent of SDR 1.5 billion (about $2.1 billion)”, – noted in the Fund.
It is supposed to conduct four reviews of the implementation of Ukraine’s programme for the next tranche.