IMF grants Ukraine loans of $17.5bn
The IMF loan to Ukraine is (obviously) based on an economic reform programme supported by the fund. Here is Lagarde’s statement in full.
The change in the IMF-supported program from Stand-By Arrangement to Extended Arrangement under the EFF, which is consistent with the more protracted nature of Ukraine’s balance-of-payment needs, will provide more funding, more time, more flexibility, and better financing terms for Ukraine.
The Ukrainian authorities continue to demonstrate a strong commitment to reform. They have maintained fiscal discipline in very difficult conditions; allowed the exchange rate to adjust; and have increased retail end-user prices for gas. Many key measures are front-loaded under the new program—including further sizable energy tariff increases; bank restructuring; governance reforms of state-owned enterprises; and legal changes aimed at combating corruption and strengthening the rule of law.
To help cushion the impact of adjustment, especially for the poorest groups, measures are being taken to strengthen and better target the social safety net.”
The program is ambitious and involves risks, notably those stemming from the conflict in the east of the country. I am heartened that the cease-fire agreed last month in Minsk seems to be largely holding for now, and hope that a further loss of life can be avoided.
I wish the authorities well as they embark on this new economic reform program. With continued firm implementation, there is reasonably strong prospect of success.
The IMF loan to Ukraine is (obviously) based on an economic reform programme supported by the fund. Here is Lagarde’s statement in full.
The change in the IMF-supported program from Stand-By Arrangement to Extended Arrangement under the EFF, which is consistent with the more protracted nature of Ukraine’s balance-of-payment needs, will provide more funding, more time, more flexibility, and better financing terms for Ukraine.
The Ukrainian authorities continue to demonstrate a strong commitment to reform. They have maintained fiscal discipline in very difficult conditions; allowed the exchange rate to adjust; and have increased retail end-user prices for gas. Many key measures are front-loaded under the new program—including further sizable energy tariff increases; bank restructuring; governance reforms of state-owned enterprises; and legal changes aimed at combating corruption and strengthening the rule of law.
To help cushion the impact of adjustment, especially for the poorest groups, measures are being taken to strengthen and better target the social safety net.”
The program is ambitious and involves risks, notably those stemming from the conflict in the east of the country. I am heartened that the cease-fire agreed last month in Minsk seems to be largely holding for now, and hope that a further loss of life can be avoided.
I wish the authorities well as they embark on this new economic reform program. With continued firm implementation, there is reasonably strong prospect of success.
well, as long as neither fundamentals nor trend giving me an antihistamine...
