The IMF has brought almost a billion dollars for Ukraine. But it may not give it
20 February 12:33
A delegation of the International Monetary Fund led by Gavin Gray arrived in Kyiv today to conduct the seventh review of Ukraine’s Extended Fund Facility (EFF) program. This was officially announced by Priscila Tofano, IMF Resident Representative in Ukraine, "Komersant Ukrainian" reports citing Interfax-Ukraine.
No further details on the mission’s work have been disclosed. Successful completion of the review will allow Ukraine to receive the next tranche of financial assistance in the amount of $917.54 million. THE NEXT TRANCHE OF FINANCIAL ASSISTANCE WILL BE DISBURSED TO UKRAINE.
It is important to note that the Ukrainian side has not fulfilled two structural benchmarks of the program. In particular, the Verkhovna Rada has not yet adopted the draft laws on the repeal of the Lozovyi amendments and on the establishment of the High Administrative Court to replace the liquidated Kyiv District Administrative Court. Although the respective draft laws No. 12367 and No. 12368 were registered by the government at the end of December last year, the parliament has not yet passed them even in the first reading.
According to the Memorandum, the first draft law is to amend the Criminal Procedure Code to expand the powers of the Specialized Anti-Corruption Prosecutor’s Office with respect to extradition and mutual legal assistance requests. The document also provides for rationalization of the consequences of expiration of pre-trial investigation terms, especially in corruption cases, which effectively abolishes the so-called Lozovyi amendments.
The second draft law aims to create a new judicial body to hear administrative cases against national state institutions, including the Cabinet of Ministers, the National Bank of Ukraine, the NABU, and the NAPC. The judges of the new body would be subject to a thorough vetting process for professional competence and integrity.
As a result of the fifth review of the EFF program, the 2025 review and disbursement schedule was revised at Ukraine’s request. Instead of the previously planned two reviews (in early March and late August), four quarterly reviews are now envisaged. At the same time, the size of the current tranche remains unchanged at $917.5 million, and the next three tranches in 2025 will amount to $809.6 million, $539.8 million, and $445.3 million, respectively.
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Cooperation between Ukraine and the IMF
Ukraine has been cooperating with the International Monetary Fund (IMF) since 1992, receiving financial support to stabilize the economy, implement reforms and ensure macroeconomic stability. Over the 31 years of cooperation with the IMF, Ukraine has launched 16 programs of economic development and reform support totaling USD 53.9 billion.
The latest cooperation program, approved in 2023, provides Ukraine with USD 15.6 billion in funding for four years. The focus is on strengthening the financial system, fiscal policy, and further reforms for post-war recovery. Meeting the IMF’s conditions is an important factor in attracting additional international financial assistance and helps to maintain Ukraine’s economic stability.
As of July 4, 2024, Ukraine was the second largest debtor to the IMF with an outstanding debt of USD 13.4 billion.
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