IMF tranche will help Ukraine overcome effects of COVID-19 crisis – Zelensky
A tranche of more than USD 2.7 billion from the International Monetary Fund (IMF) will be a great gift to Ukraine on the eve of the 30th anniversary of independence, President Volodymyr Zelensky has said.
He said this while commenting on the relevant decision of the Fund, Ukrinform reports with reference to the President’s Office.
Ukraine is expected to receive the tranche on August 23.
“It will be a great gift for our country on the 30th anniversary of independence. These funds will help overcome the effects of the COVID-19 crisis and boost our economy. I am grateful to the IMF and personally to Kristalina Georgieva for this decision,” the president stressed.
Zelensky also noted that cooperation with the IMF is very important for our country, so Ukraine continues to implement reforms and structural beacons to receive a new tranche under the current stand-by program.
“We are working to complete the first revision of the current program of the International Monetary Fund and expect an IMF mission in September. I emphasized this during our phone conversation with Mrs. Kristalina Georgieva,” he said.
The President’s Office reminds that after a phone conversation between President Volodymyr Zelensky and IMF Managing Director Kristalina Georgieva last week, Ukraine will receive more than USD 2.7 billion from the IMF free of charge and without any additional conditions.
The decision was made by the IMF Board of Governors at the suggestion of Kristalina Georgieva to help rebuild the world economy affected by the COVID-19 pandemic. In total, Special Drawing Rights (SDRs) equivalent to USD 650 billion will be distributed among the countries.
This is the largest SDR allocation in the Fund’s history, according to the official statement of the IMF.
The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.