Poroshenko: for the First time in the history of cooperation with the IMF, Ukraine has received the fourth tranche of the same program

The President of Ukraine Petro Poroshenko announced that the Board of Directors of the International monetary Fund (IMF) decided to allocate Ukraine tranche in the amount of $1 billion.

“The Board of Directors of the IMF decided to allocate Ukraine one billion dollars. This is another recognition of the Ukrainian reforms”, – wrote Poroshenko on his page on the social network Facebook on Monday

The President of Ukraine noted that for the first time in the history of cooperation with the IMF, Ukraine has received the fourth tranche in the framework of the same program.

“We have jointly created this success story and, I believe, will continue to cooperate with the Ukraine on a sustainable growth trend. I sincerely thank Christine Lagarde, managing Director of the International monetary Fund, for her personal devotion and belief in the success of the program of development of Ukraine”, – wrote P. Poroshenko.

“Our success on the domestic front, reforms, and international unity and solidarity is the best response to the ongoing Russian aggression and attempts to destabilize the Ukraine from the Kremlin”, – said the head Ukrainian state.

As reported, the question of the third review of the EFF program for Ukraine, the IMF was excluded from the agenda of the Executive Board, scheduled for March 20.

Later, the Ministry of Finance of Ukraine explained that the postponement of the meeting due to the need to clarify the calculation of the economic impact of the measures applied by the country in response to the railway blockade in the Donbass, the nationalization of Ukrainian enterprises not under the control of Kiev territories of Donetsk and Lugansk regions, and also in connection with the recognition of Russia as so-called “passports” issued in these areas.

The Ministry of Finance and the national Bank of Ukraine has sent to the IMF adjusted macroeconomic forecasts last week.

On Thursday morning, March 30, Finance Minister Alexander danyluk said that the IMF Board of Directors will consider the question of the third review of the eff the EFF for Ukraine on 3 April 2017.

Kiev also asked the IMF to change the timetable for further revisions eff and EFF, respectively, the receipt of the next tranches.

On March 4, the IMF announced the agreement with the authorities of Ukraine in respect of the Memorandum of economic and financial policies. This opens the way for the completion of the third review of the eff the EFF, the results of which Ukraine may be granted the fourth tranche of funding, volume SDR734,05 million (about $1 billion).

Open the IMF in March 2015 the four-year EFF program total amount of SDR12,348 billion (about us $17.25 billion) with the first tranche of $5 billion originally envisioned by the quarterly revision of the program, the allocation in 2015 of three more tranches of SDR1,18 billion ($1.65 billion) and a decrease in quarterly tranches in 2016-2018 to SDR0,44 billion ($0.61 billion).

Ukraine was able to obtain a small delay in the second tranche for this program to $1.7 billion in early August 2015, and then there was a long pause because of the outstanding number of conditions, political crisis and change of government.

After the arrival of the new Cabinet, headed by Volodymyr Groisman in April 2016, the negotiations on the continuation of funding was resumed, however, the IMF decided to allocate the third tranche of $1 billion only in mid-September.