Ukraine Agrees With IMF On Increase Of New Program To $8Bln From $5.5Bln - President

Ukraine Agrees With IMF on Increase of New Program to $8Bln From $5.5Bln - President

Ukrainian President Volodymyr Zelenskyy said on Friday that the country's authorities had agreed with the International Monetary Fund (IMF) to increase the size of the new program to $8 billion from $5.5 billion

KIEV (Pakistan Point News / Sputnik - 28th March, 2020) Ukrainian President Volodymyr Zelenskyy said on Friday that the country's authorities had agreed with the International Monetary Fund (IMF) to increase the size of the new program to $8 billion from $5.5 billion.

Earlier in the day, IMF Managing Director Kristalina Georgieva said that the IMF had made good progress in talks with Kiev on providing more financial support to Ukraine. If Ukraine adopts laws to improve the bank resolution framework and on land reform, the new agreement will be larger than previously envisaged, she noted.

"Now we have agreed to increase the program ... As for the International Monetary Fund, now we can at least get an increase in the program to $8 billion," Zelenskyy said after a meeting of the Servant of the People party.

The first tranche may amount to $2 billion, if the new program is signed, he said.

"We agreed with the IMF management that as soon as we fulfill these conditions, we will receive the first quick tranche, which will be about $1.75-$2 billion, within 15 days. I think it will be $2 billion, which we will receive immediately to the budget of Ukraine," Zelenskyy said.

The IMF's preconditions were the adoption of two laws relating to the banking system and the land market, he confirmed.

The total assistance to Ukraine from the IMF, the World Bank and the European Bank for Reconstruction and Development (EBRD) may amount to at least $10 billion, he said, adding that the country could get additional assistance from Azerbaijan and Canada.

The president also said that he was discussing debt restructuring with international lenders, but so far he has not yet received an answer.

In December 2019, the IMF announced an agreement with Ukraine on a three-year $5.5 billion loan. The main goals of this program include strengthening the rule of law, fighting corruption, enhancing competition, opening up markets, reducing the role of the state and oligarchs, according to the IMF.

In 2018, the IMF approved a $3.9 billion standby loan agreement for Ukraine, but issued only $1.4 billion and conditioned the rest of the funds on reviews of the country's macroeconomic stability.

According to the 2018 agreement, the second tranche was supposed to be issued after a six-month period following a review of Ukraine's macroeconomic stability. However, the IMF delayed approving the second tranche and has brought up the possibility of negotiating a new credit program.