IMF approved the allocation of almost $ 700 million to Ukraine

The IMF Council has extended the agreement until the end of June 2022.The IMF agreed on the allocation of the next tranche to Ukraine / Illustration REUTERSThe IMF agreed on the allocation of the next tranche to Ukraine / Illustration REUTERS

The International Monetary Fund decided to allocate almost $ 700 million in tranche to Ukraine within the framework of the Stand-by program.

This was announced by the President of Ukraine Volodymyr Zelensky on Twitter .

“I am grateful to the IMF Board of Directors for the positive decision to complete the revision of the stand-by program, which provides for the allocation of a tranche of about $ 700 million. We will use these funds to support the financial system and combat the consequences of COVID-19. The IMF program will continue,” he said … 

The IMF website reports that the Executive Board completed the first review under the stand-by program for Ukraine and approved the extension of the agreement until the end of June 2022.

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 an IMF loan under a 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 special drawing rights (SDR), 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.

On a repeat mission in October this year, the International Monetary Fund and Ukraine  reached a  staff-level agreement on the first revision of the stand-by funding program.

Prime Minister Denis Shmygal expected that in November 2021 the Board of Directors of the International Monetary Fund would decide to allocate a new tranche  of $ 700 million to Ukraine  as part of the stand-by financing program.

(C)UNIAN 2021

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