Bloomberg learns outcome of decision on new IMF tranche for Ukraine
Photo: The IMF will provide Kyiv with a second loan tranche (Getty Images)
The International Monetary Fund has approved the provision of another loan tranche to Ukraine. The amount will be nearly 700 million dollars, Bloomberg reports.
An agreement between the Ukrainian government and representatives of the International Monetary Fund has been reached at the staff level. For the final disbursement of funds, this decision still needs to be approved by the Fund’s Board of Directors, whose meeting will take place next month.
An agreement was reached after several weeks of difficult negotiations during a recent International Monetary Fund mission in Kyiv.
Tax compromise
One of the key issues during the discussions was a draft law on taxing international parcels worth over 45 euros, which is intended to help reduce the share of the shadow economy in Ukraine.
According to sources, the IMF made concessions and agreed to postpone the adoption of this law until July. This will give Ukrainian lawmakers additional time to fulfill the requirement.
The next stage of negotiations between Ukraine and the lender is expected no earlier than September.
On May 26, the Verkhovna Rada (parliament) did not support draft law No. 12360 and rejected amendments on taxing international parcels. Lawmakers also did not approve a proposal to send the document back for a second reading.
According to MP Yaroslav Zhelezniak, the Cabinet of Ministers will now have to submit a separate draft law to parliament.
The vote took place amid the start of the IMF mission in Kyiv. The review of Ukraine’s cooperation program with the Fund is considered one of the most difficult, and one of the key requirements is the introduction of taxation on all international parcels.
