IMF delegation arrives in Ukraine to launch reform talks
Photo: IMF representatives have arrived in Ukraine and begun negotiations on reforms (Getty Images)
Today, March 18, a mission from the International Monetary Fund (IMF) arrived in Ukraine, according to the IMF's Resident Representative in Ukraine, Priscilla Toffano.
According to her, IMF experts led by Gavin Gray have begun a series of meetings with Ukrainian officials and other partners as part of the Fund’s staff visit.
"The discussions will cover the authorities’ economic policy objectives, with a focus on fiscal and monetary policies to promote stability amidst continued exceptionally high uncertainty, and structural policies to strengthen governance, combat corruption and enhance growth," says Priscilla Toffano, the IMF’s Resident Representative in Ukraine.
Background
The IMF previously approved a new Extended Fund Facility program for Ukraine. It is designed to last four years and amounts to $8.1 billion, which will partially cover Ukraine’s budget deficit.
Ukraine received the first tranche, approximately $1.5 billion, in early March. Further disbursements depend on the fulfillment of a number of conditions.
Yesterday, Bloomberg reported that the IMF expressed concern about Ukraine’s ability to receive the remaining funds from the $8.1 billion package due to the inaction of members of parliament.
The IMF stated that the Verkhovna Rada has until the end of March to adopt a series of legislative changes as part of the four-year loan program.
These changes involve raising taxes on businesses and the general public. These specific steps are a condition for receiving subsequent aid tranches. However, lawmakers have not yet been able to pass the changes.
