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Central bank no longer expects IMF tranche this year

Ukraine may receive IMF money in Q1 2018.

Central bank no longer expects IMF tranche this year
Photo: Photo: EPA / UPG

The National Bank of Ukraine no longer counts on receiving the fifth tranche of the International Monetary Fund this year, the NBU said in a statement on Thursday, 26 October.

"The National Bank expects to receive the next tranche under the EFF program in the first quarter of 2018. Coupled with with a surplus of the consolidated balance of payments, it will allow increasing international reserves to 22.1 bn dollars by the end of 2018," the central ban said.

The NBU downgraded forecast by 2017 yearend from 20 bn to 18.6 bn dollars.

The National Bank emphasizes that further cooperation with the IMF is a key factor in its macroeconomic forecasts.

In order to receive the fifth tranche, Ukraine must adopt a bill on simplification of privatization and pass anti-corruption court legislation.

In March 2015, the IMF opened a four-year EFF 17 bn dollar program for Ukraine. It envisages a quarterly review and the release of four tranches in 2015 and four another tranches in 2016.

Ukraine received only four tranches, and the timing of their allocation was delayed. The first tranche of 5bn dollars was received in March 2015, another 1.7 bn dollars were released in August 2015, the third 1bn dollar) in September 2016, the fourth (1bn dollars) came in April 2017.