The International Monetary Fund has agreed with Ukraine the reform policies it must implement for the board to agree in July to dispense a long-delayed third tranche of loans under a $17.5 billion bailout program, the fund said on Wednesday, according to Reuters.
An IMF mission visited Kyiv last week to assess efforts to root out corruption and revamp Ukraine`s war-torn economy, which months of political turmoil and a reshuffle of the pro-Western leadership have disrupted, Reuters reports.
Mission chief Ron van Rooden said considerable progress had been made restoring stability, but said the government needed to boost efforts to improve transparency and the rule of law.
”Steadfast implementation of structural and institutional reforms is now critical,” he said in a statement.
”Unwavering determination in the fight against corruption (is) emerging as a litmus test for the government`s ability to retain broad domestic and international support for its policies,” he said.
As UaPosition reported earlier, the four-year EFF program worth about $17.5 billion originally foresaw quarterly reviews of the program, the disbursement of four tranches to Kyiv in 2015, another four in 2016. However, at present, the country has received only the first tranche worth $5 billion on March 13, 2015, and the second one worth $1.7 billion arrived on August 4, 2015.
The second review is under way, as Ukraine and the IMF are in talks on a wide range of issues, which includes various aspects of monetary, banking and anti-corruption policies, the pension reform and the privatization process. Based on results of the review, a memorandum should be signed between the Ukrainian government and the IMF`s Executive Board.
Ukraine`s Finance Minister Oleksandr Danylyuk said the restoration of cooperation with the Fund was vital for Ukraine as it would help unlock further financial assistance from Ukraine`s international partners.