Today, March 26, Ukraine received a new tranche of $880 million from the International Monetary Fund. It is the third tranche of financial support under the Extended Funding Facility (EFF).
Ukraine received a new tranche from the IMF
The funds will help cover priority budget expenditures and maintain macro-financial stability. Ukraine continues to successfully fulfill its obligations to partners. We are already preparing for the next review of the program, wrote PЬ Denys Shmyhal.
According to him, Ukraine successfully fulfils its obligations to its partners. We are already preparing for the subsequent viewing of the program.
What conditions did Ukraine undertake to fulfil by the IMF
The IMF's new four-year program for Ukraine, which is approximately $15 billion, allocates $4.5 billion by the end of the year or $5.5 billion within the next 12 months.
According to one of the officials representing Ukraine at the negotiations, the technical details must be agreed upon to reach a final decision on the program—this is expected to be done within the next few days.
The publication also has information about the conditions Ukraine has undertaken to fulfil regarding the IMF.
So, the key innovation, which was not present in previous programs, is a medium-term income strategy for five years. That is, it is something similar to the plan of tax revenues, on which the state budget will be based in the coming years.
The second condition is the inadmissibility of issue financing of the state budget deficit, and instead, more active raising of money by the government on the domestic debt market.
In addition, the Cabinet of Ministers should review the macro parameters on which the 2023 budget is based. According to one of the government officials, it is, in particular, about the indicator of the average annual exchange rate of the dollar (now it is UAH 42.2). The budget indicator should also be lower since the retail exchange rate is below UAH 39 per dollar.
As in previous programs, a separate block of conditions is related to the fight against corruption. According to the publication's interlocutor, this time it concerns restarting the Bureau of Economic Security.
