IMF board of directors sets date for meeting to address economic challenges facing Ukraine

30 March, 11:49 AM
The IMF is considering a four-year financing program for Ukraine (Photo:Johannes P. Christo / Reuters)

The IMF is considering a four-year financing program for Ukraine (Photo:Johannes P. Christo / Reuters)

The IMF Board of Directors will review Ukraine’s request for a new four-year extended EFF financing program on March 31, Ukrainian news agency Interfax-Ukraine reported on March 30.

The review will be preceded by a summary of the outcomes of the December-launched Monitoring Program for Ukraine (PMB) in which the Board participated, the agency said.

Earlier, on March 21, the IMF announced that it had reached a staff-level agreement on a new four-year EFF program for Ukraine of a total amount of SDR 11.6 billion (about $15.6 billion).

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The draft Letter of Intentions from the government and the National Bank of Ukraine, along with the draft Memorandum on Economic and Financial Policy, were approved by the Cabinet of Ministers on March 24, but these documents are not typically made public at this stage.

The program has been designed to consist of two stages, with the first stage focused on maintaining stability for a period of 12-18 months, while the second stage, which includes significant structural reforms, is geared towards promoting growth and European integration.

The negotiations on the new EFF program were preceded by the PMB monitoring program. In the conditions of the IMF’s reluctance to immediately allocate significant funding, Ukraine last autumn invited the PMB to work for a period of four months, and received approval from the board of directors for this on Dec. 20.

The IMF mission concluded its work in Warsaw on Feb. 17, resulting in the announcement of the early termination of the PMB program, and a shift towards developing a new, more comprehensive program that includes financing.

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