Ukraine`s key creditor, the International Monetary Fund, has noted significant progress in its cooperation with Ukraine, as well as in part of Kyiv`s implementation of a reform program, approved in March 2015; however, the Fund`s Executive Board has not yet set a date to consider allocation of a $1 bln tranche for Ukraine, according to the IMF spokesperson Gerry Rice.
”[There is] good progress on policies needed to complete the third review under the [EFF] program. Close discussions with the authorities are continuing. Assuming all the remaining issues can be resolved soon, we expect to propose the completion of the review to the Board in the coming weeks,” Rice said.
He refused to elaborate on any certain technical issues which were yet to be resolved, noting that they were related to the pension reform, public management reform, fighting corruption, and a number of other issues.
Mr Rice has not provided any details of Ukrainian Finance Minister Oleksandr Danyliuk`s possible visit to Washington, saying he does not have ”any confirmation on that visit.”
Earlier, in September 2016, after more than a year`s break, Ukraine has resumed cooperation with the IMF on the four-year Extended Fund Facility (EFF) worth $17.5 billion. Under this program, Ukraine has already received three loan tranches, totaling $7.62 billion. Ukraine expected to receive the fourth $1 billion tranche by the end of 2016, having fulfilled the key requirements, namely the adoption of the budget for 2017 and nationalization of the country`s largest bank, PrivatBank.
However, the IMF Executive Board meeting on the Ukrainian issue and allocation of money was delayed several times. Meanwhile, it order to hold such a meeting, Ukraine and the IMF are required to sign a letter of intent, followed by a memorandum, which would identify key beacons of the reform program implementation for the coming months. These beacons are expected to be land and pension reforms.
February 13, the head of the National Bank of Ukraine Valeria Gontareva said that Ukraine would sign off a memorandum with the International Monetary Fund for the fourth loan tranche worth $1 billion in a few days.
At the same time, IMF Managing Director Christine Lagarde in an interview with Reuters noted that the Fund was satisfied with its negotiations with Ukraine on the country`s reform program and noted that the direction of cooperation was set correctly.