11:52 19.09.2017

IMF confirms intention to transfer next tranche to Ukraine after pension reform – Lozhkin

2 min read
IMF confirms intention to transfer next tranche to Ukraine after pension reform – Lozhkin

The confidence of the International Monetary Fund (IMF), which confirmed the intention to transfer the next tranche under the EFF program to Ukraine, was one of the reasons for the rush demand for Ukrainian eurobonds, which allowed Ukraine to raise $3 billion for 15 years at a rate reduced from 7.75% to 7.735% per annum, the secretary of the National Investment Council, the former head of the presidential administration, Borys Lozhkin, has stated.

"The main reason for the rush demand is, of course, a successful market situation: a high rate of return and the availability of free money from investors ... Another reason is the confidence of the IMF, which confirmed the intention to transfer the next tranche after the pension reform is implemented. Institutional investors rely heavily on the IMF's view on the economic prospects of a certain country," he wrote on his Facebook page from New York, where he meets with investors together with the president.

He specified, for comparison, that U.S. securities are circulating in the market at a rate of about 2%, those of the UK at 1.5%, and Greece at 5.4% per annum.

Lozhkin, commenting on the discussion with investors, noted they recognize Ukraine as worthy of trust.

"I hope that in the near future we will see the results of this interest not only in the public but also in the private sector," he said.

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