Ukraine still has chances to receive IMF tranche in Q1 2021 – BofA

12:34, 20.01.2021 1 min read

Ukraine could still receive a tranche of the International Monetary Fund (IMF) in January-March 2021, despite the introduction of state regulation of the gas market, but a more conservative scenario provides for receiving this tranche in April-June this year, BofA analysts have said.

The high financing needs in 2021 should keep Ukraine in cooperation with the IMF, BofA Global Research said in the materials which are available to Interfax-Ukraine.

In their opinion, the IMF may postpone the tranche to Ukraine in connection with the introduction of measures of state regulation of the gas market, however, the IMF will most likely take into account the mitigating factors of such a decision. This is the temporary nature of the decline in gas prices and the emergency conditions of the pandemic. This will allow Ukraine to sign a staff-level agreement in the near future, according to BofA.

Additional risks for the overall investment process in Ukraine are mainly associated with the promised impetus to the reform of justice, BofA analysts said.