NBU: It is the most successful IMF program in the history of Ukraine

The national Bank of Ukraine (NBU) has welcomed the decision of the Board of Directors of the IMF to provide Ukraine tranche of financial assistance in the amount of $ 1 billion. About it reports a press-service of the NBU.

“This is the fourth installment in the four-year eff EFF, which is a confirmation of the success of reforms aimed at creating a more robust and stable financial system and the economy. It is the most successful IMF program in the history of Ukraine”, – according to the NBU.

In particular, the national Bank notes that a condition of disbursement of a tranche, it was the achievement of Ukraine’s progress in cleaning up and stabilizing the banking system. According to the regulator, a significant role in the approval of the tranche was made by the nationalization of PrivatBank.

Commenting on the decision, IMF, NBU head Valeria Gontareva said: “This is a real vote of confidence from the international financial community. … Our tough stress tests for major banks, the desire usovershenstvovat standards and decisive steps if necessary, in particular recently during the successful entry of the state capital of PrivatBank – all these actions had an important role in the stability of the financial system.”

As is known, Ukraine and the IMF in March 2015 signed a Memorandum of economic and financial policies which the country should undertake in the framework of the extended Fund (EFF).

The entire program provided Ukraine with about $ 17 billion of which have already been allocated 7,7 billion dollars. So, in September 2016 after a delay of a year, the IMF approved the granting Ukraine the third tranche in the amount of one billion dollars.

Yesterday, April 3, the Board of Directors of the IMF completed the third review of the economic program of Ukraine in the framework of the extended financing facility (EFF) that allows you to give Ukraine about 1 billion dollars.

The decision to allocate the tranche was made after further examination by the IMF of a possible impact of the trade embargo on the Ukrainian economy and update the macroeconomic forecasts of the NBU and the Ministry of Finance. The IMF came to the conclusion that the situation will be a moderate impact on economic growth and the balance of payments and will not pose a threat to the implementation of the inflation target of the NBU.

While the IMF asked Ukraine to stop reforms. In particular, according to the IMF, Ukraine can no longer postpone the large-scale pension reform, including raising the effective retirement age.

Commenting on this statement of the IMF on the need to increase effective retirement age, the Minister of Finance of Ukraine Alexander danyluk has already explained that we are talking about the greater fairness of the pension system.

“We set the right setting – experience. Without this we can not raise the level of pensions for the Ukrainians and to guarantee them in 3-4 years”, – said the head of the Ministry of Finance.