The programme will focus on 4 priorities.
New assistance program stand-by for Ukraine for a total amount of 3.9 billion dollars provides for the granting of the first tranche immediately in the amount of 1.4 billion USD, and view of program execution to allocate the following payments every six months.
This is stated in the official statement on the IMF website.
The program will focus on 4 priorities:
– continuing the current fiscal consolidation to further reduce debt;
– the reduction of inflation by maintaining the flexible exchange rate regime;
– strengthening the financial sector, facilitating asset recovery and revival of Bank lending;
– promotion of purposeful conjunction of structural reforms, in particular, for improving the processes of tax administration, privatization and management.
“The Ukrainian government has successfully reestablished macroeconomic stability and growth with the support of the international community. Prudent fiscal and monetary policies, a flexible exchange rate regime helped to reduce the fiscal deficit and the current accounts.
Reserves have been partially restored, and confidence increased,” – said the first Deputy Director and acting Chairman of the Fund, David Lipton.
According to him, the new agreement stand-by “support the economic policy of the Ukrainian authorities over the next year, keeping recent trends in economic growth and contributing to more sustainable growth.”
“With the support of the world Bank and the EU, this agreement will help Ukraine to cover its financial needs,” he said.
At the same time, Lipton noted that the implementation of the program “is subject to significant risks – both internal and external”.
“The Ukrainian government has taken important steps to mitigate these risks, including by establishing a reliable budget for 2019, the increase of tariffs on gas and heating and introducing legislation to improve governance in state-owned banks.
Full and timely implementation of the programme will be crucial to its success in the context of complex challenges,” he added.
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