The Executive Board of the International Monetary Fund made a positive decision on the completion of the first review of the Stand-By Programme and on the allocation to Ukraine a tranche of USD 700 million.
Also, the Stand-By Program has been extended till the end of June 2022.
The proceeds from the IMF will be used to ensure macroeconomic stability and to finance the budget deficit.
Minister of Finance of Ukraine Sergii Marchenko welcomed the decision of the IMF Board.
I am grateful to the IMF team, who has been our reliable partner for a long time. The decision to allocate the tranche is the result of our ongoing structural reforms and evidence that our country is on the right track. We have made significant efforts to achieve this result. Availability of the IMF program has a positive influence on the international image of our country and opens up opportunities for receiving financial support from several international partners
To receive the IMF tranche Ukraine has implemented some systematic reforms supported by the IMF, in particular on the launch of the reform of the judicial system, continuing reforms in the financial sector and eliminating threats to the anti-corruption infrastructure arising from decisions of the Constitutional Court made back in October 2020.
On October 18, 2021, the IMF and Ukraine reached a staff-level agreement on the completion of the first review of the Cooperation Program with the IMF, which began in June 2020, with a total amount of USD 5 billion.
The Prime Minister of Ukraine Denys Shmyhal welcomed the Fund’s decision, emphasizing that the positive assessment of international partners demonstrates the successful advancement of Ukraine in pursuing a policy of reforms.
Through the measures taken by Ukraine in terms of reforming the judiciary, continuing the reform in the financial sector, we have confirmed the status of Ukraine as a reliable and responsible partner. The IMF financing will be directed to support the stability of the financial system and combat the aftereffects of COVID-19 pandemic
The IMF Board also decided to extend the program until the end of June 2022.
A joint Stand-By Arrangement between Ukraine and the IMF to the tune of $5 billion was approved on June 9, 2020. It aims to overcome the effects of the COVID-19 pandemic, strengthen the results and continue to implement important structural reforms in Ukraine.