The IMF gave Ukraine a billion dollars. What will the money
The Board of Directors of the International monetary Fund approved the allocation of Ukraine the next tranche of 1 billion US dollars. The national Bank stressed that it 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”.
One of the conditions for tranche was achieving Ukraine’s significant progress in the purification of the banking system and its stabilization. The loan also contributed to the nationalization of “PrivatBank”.
“With the support of foreign creditors, including the IMF, the world Bank, the European Bank for reconstruction and development and the countries “Big seven”, the transition of the PJSC “PrivatBank” to the state property received, with positive feedback from the international community as an example of international best practices of financial recovery of systemically important financial institutions”, – noted in the NBU.
Tranche in the amount of $ 1 billion will be added to the international reserves of the national Bank (money not yet received in Ukraine).
“The next tranche means that both parties adhere to their obligations, and the Fund welcomed the reforms, which are implemented in Ukraine. The increase in NBU reserves will have a positive impact on the stability of the national currency. The confidence of the International monetary Fund is a prerequisite for attracting international investors to Ukraine. The continuation of cooperation between Ukraine and the IMF under the extended financing facility confirms the readiness of Ukraine to implement structural reforms to ensure sustainable development,” – comments the Ministry of Finance.
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Reform and gratitude. Poroshenko and Lagarde discussed the selection tranche of the IMF
The Chairman of the NBU Valery Gontareva assures that the money from the IMF will help strengthen financial stability in Ukraine and to continue the reforms.
“I welcome the decision of IMF on allocation of the fourth tranche of funding provided through the EFF to replenish international reserves and, consequently, strengthening of financial stability of Ukraine. This is a real vote of confidence from the international financial community,” – said Gontareva.
The head of the national Bank was considered as useful for the economy of the purification of the banking system from insolvent banks.
“I speak on behalf of the NBU, when I say that I am proud that our tireless work for large-scale purification and restructuring of the banking sector contributed to this success. It will be a clear message to all those who sought unlawfully to use the banking sector to their advantage. It will also bring benefits for future generations of Ukrainians”, – said Gontareva.
The head controller assures the stability of the banking system of Ukraine.
“Our stringent stress tests for major banks, the desire to improve 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. The NBU will continue to work to ensure that all banks in Ukraine operate at the highest level of regulatory practices and transparency, which, in our opinion, should be mandatory to stimulate sustainable and balanced growth of Ukraine”, – said the head of the NBU.
We will remind, consideration of the allocation of Ukraine the next tranche of the IMF loan was postponed several times due to the approval of the updated Memorandum of cooperation (which is still not released), and also due to adjustments to figures and forecasts after the introduction of official trade and transport blockade of the occupied territories of Donbass.
The IMF believe that the “situation (the blockade of the occupied Donbass) will have a moderate impact on economic growth and the balance of payments and not be a threat to the implementation of the inflation target of the national Bank”.
Recall that Ukraine has already received from the IMF on a new extended credit programme 7.7 billion dollars, not counting the current tranche of $ 1 billion, which is not yet credited to the account of the national Bank. Overall, the program signed in the spring of 2015, for four years, and the total amount of the loan amount to $ 17.5 billion.
Earlier the head of the NBU Valeria Gontareva noted that despite the delay of the fourth tranche, the baseline scenario provides for four tranches of the IMF in the amount of $ 5.4 billion in 2017.
Meanwhile, Finance Minister Alexander danyluk hopes for a new tranche of the IMF in may.