Ukraine is showing welcome signs of recovery, says IMF's Lagarde
"The program failed to reach many of its goals but "become an anchor in the face of uncertainty."
The IMF reported in a press release, that the Executive Board of the Fund decided to provide Ukraine 1bn dollars. At the same time the IMF has allowed Ukraine to withdraw from the performance criteria related to the size of international reserves, arrears on international payments, and restrictions on foreign exchange market.
The IMF report also provides a positive assessment of the director of the Fund, Christine Lagarde, the situation in Ukraine and transfer steps that have to be done.
They include tax reform and pension reform, reduction of inflation and the growth of foreign exchange reserves, deregulation, strengthening the banking system, the fight against corruption and the reorganization of state-owned companies.
"Despite the fact that the program was carried out with considerable difficulty from the outset and has not reached many of its goals, it has become an anchor in the face of uncertainty," Ms. Christine Lagarde, Managing Director and Chair, said following the Executive Board’s discussion.
In April 2014 the IMF approved a 17.01bn dollar loan program for Ukraine, and issued two tranches 3.19 bn and 1.39bn dollars. In 2015, the stand-by program was replaced by Extended Fund Facility (EFF) arrangement that envisages broader international financial support.
Ukraine received previous IMF tranche in August 2015. The last mission of the Fund has worked in Ukraine from 10 to 18 May 2016 and announced that the Fund will consider the allocation of Ukraine the next tranche in July. However, the Board of Directors meeting has been postponed until mid-September.