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IMF ready to approve a new program for Ukraine after the increase in tariffs for heating

МВФ готов утвердить новую программу для Украины после повышения тарифов на отоплениеThe IMF has called for the conclusion of a new loan program with Ukraine.

The Board of Directors of the International monetary Fund (IMF) is ready to approve a new programme to support the economic policy of Ukraine – stand-by arrangement (SBA) only after the final revision of tariffs for heating in accordance with the increase in gas prices.

“The agreement with the IMF assumes that heating tariffs need to be revised taking into account the increase in gas tariffs until approval of a new program by the Board of Directors of the Fund”, – stated in the document.

We will remind that last Friday the Cabinet adopted a decision to increase gas prices for population by 23.5% from November 1, 2018.

Until that time, the price of gas for supply to the population and CTV will remain the same – 4 942 UAH per 1 thousand cubic meters, and for the final consumer, including VAT and other charges – 6 958 UAH per 1 thousand cubic meters Since 1 November, the final price for the population will be 8 593 UAH per 1 thousand cubic meters of gas.

See also: the IMF requires that Ukraine increase gas prices – media
Ukraine is in a difficult negotiation process with the IMF on the gas issue since July of 2017. The IMF mission from 6 to 19 September this year, worked in Kiev.

19 October Ukraine and the IMF reached a working agreement on a new 14-month program of support to the economic policy stand-by arrangement (SBA) for $3.9 billion, which will replace the EFF program.

Ukraine is now cooperating with the IMF under the program of expanded financing (EFF), which was approved in March 2015 and expire in March 2019. Program has been provided for Ukraine about $17 billion from the first tranche of $5 billion, Ukraine was able to obtain a slight delay in the second tranche for this program to $1.7 billion in early August 2015, and then there was a long pause in connection with the failure of a number of conditions, political crisis and change of government.

After the arrival of the new Cabinet in April 2016, the negotiations on the continuation of funding resumed, however, the Fund decided to allocate the third tranche of $1 billion only in mid-September, the fourth – 3 April 2017. Just for the EFF program, Ukraine has received $7.7 billion.

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