IMF says agreement reached with Ukraine on new $5 bln program
The International Monetary Fund (IMF) and Ukraine have reached a preliminary agreement on a new 18-month Stand-By Arrangement worth $5 billion, the IMF has said in a press release.
“The International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff-level agreement on economic policies for a new 18-month Stand-By Arrangement (SBA),” the statement reads.
It notes that the new SBA, with a requested access of SDR 3.6 billion (equivalent to $5 billion), aims to provide balance of payments and budget support to help the authorities address the effects of the COVID-19 shock, while consolidating achievements to date, and moving forward on important structural reforms to reduce key vulnerabilities.
“This will ensure that Ukraine is well-poised to return to growth and resume broader reform efforts when the crisis ends. The arrangement is also expected to catalyze additional bilateral and multilateral financial support,” the IMF said.
The agreement is subject to approval by Fund Management and the IMF Executive Board.
“Board consideration is expected in the coming weeks,” the statement reads.
One of the IMF’s major requirements for a new program with Ukraine was the adoption of a banking law.