Agreement on the second tranche: Ukraine and the IMF took an important step to continue cooperation
The parties agreed that the financing program will be extended, but the agreement has yet to be approved.It became known about an important agreement between Ukraine and the IMF on the second tranche in the framework of the stand-by program / illustrative photo Reuters
The IMF mission and Ukraine have reached a staff level agreement on the first revision of the stand-by funding program.
This is stated in the statement of the head of the IMF mission in Ukraine Ivanna Vladkova-Gollar.
“This will make possible a tranche of SDR 500 million (Special Drawing Rights), which is the equivalent of about USD 700 million,” the statement said.
In addition, the parties agreed to extend funding until the end of June 2022.
At the same time, the IMF noted that both the agreement and the request of the Ukrainian authorities to continue the program are still subject to approval by the Fund management and the IMF Board of Executive Directors.
As a reminder, on September 21, the mission of the International Monetary Fund began work in Ukraine to revise the stand-by program.
On June 9, 2020, the IMF Board of Directors adopted an 18-month stand-by program for Ukraine with funding equivalent to about 5 billion, aimed at helping to overcome the consequences of the COVID-19 pandemic.
On June 12, Ukraine received the first tranche of the IMF loan under the new cooperation program in the amount of $ 2.1 billion. According to the plan, the second tranche of the IMF for Ukraine should be 500 million SDRs, which is approximately equal to $ 700 million.
At the beginning of 2021, an IMF mission worked in Ukraine to revise the stand-by program. The mission ended without making a decision to revise the program.