Ukraine will receive IMF money in different currencies

Funds of the fourth tranche of the International monetary Fund (IMF) under EFF extended Fund in the amount of $ 1 billion will go to Ukraine in the coming days.

This will increase the country’s international reserves to 16.1 billion dollars, said the Deputy head of the national Bank of Ukraine (NBU) Oleg Churiy.

“We expect that the funds will arrive in the coming days in different currencies, which are included in the Special drawing rights (SDRs) – as in US dollars and in pounds and in euros. Part of the tranche will go directly to the accounts of the NBU in the currency of the SDR,” said Curi.

Curi noted that since the beginning of cooperation with the IMF EFF program for Ukraine in four tranches will receive 8.7 billion dollars, which increased its reserves by nearly three times.

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 through 3 – 4 years”, – said the head of the Ministry of Finance.