15:34 29.07.2014

IMF chief urges Ukraine to implement policy package to continue stand-by program

2 min read
IMF chief urges Ukraine to implement policy package to continue stand-by program

Managing Director of the International Monetary Fund (IMF) Christine Lagarde has urged the Ukrainian authorities to continue the implementation of reforms, including the package of measures needed to complete the first review of the stand-by program of cooperation with the fund, according a statement released by the IMF on Tuesday.

Lagarde discussed the latest political developments and the efforts of the Ukrainian authorities to implement reforms supported by the IMF program at a meeting with Governor of the National Bank of Ukraine (NBU) Valeriya Gontareva and Foreign Minister Pavlo Klimkin in Washington on July 28.

As reported, the IMF Executive Board on April 30 approved a two-year SBA worth SDR 10.976 billion (about $17.01 billion) for Ukraine. Early in May, the IMF transferred the first tranche worth SDR 2.058 billion (about $3.2 billion), with SDR 1.29 billion (about $2 billion) allocated to the Ukrainian government for budget support.

The IMF mission arrived in Ukraine for the first review of the program on June 24 and worked until July 18. As part of the first review the sides discussed the adjustment of the macroeconomic forecast and the state budget for 2014, including due to the unstable situation in Donetsk and Luhansk regions.

Last week, Ukrainian President Petro Poroshenko and Prime Minister Arseniy Yatseniuk held telephone conversations with Lagarde, during which they assured her of the country's readiness to fulfill all obligations under the stand-by program. According to Poroshenko, the Ukrainian authorities and the IMF mission developed an adjusted reform plan for the implementation of the program with a view to its further coordination at a meeting of the IMF Executive Board due in the second half of August.

Lagarde, in turn, warned Ukrainian politicians of populism and extra promises during the election campaign, as in the current financial and economic situation in the country they cannot be fulfilled.

In case of a positive decision of the Executive Board, Ukraine will receive the second tranche of a loan worth about $1.4 billion.

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