The Ministry of Finance of Ukraine welcomes the completion
of negotiations with the IMF mission which visited Ukraine on May 10-18 for the
second review of the Extended Fund Facility (EFF).
Ukraine and the IMF mission agreed to resume cooperation
based on considerable progress made by Ukraine last year in restoring economic
stability as well as taking into account recent significant efforts made
jointly by the Government, President, National Bank and the Parliament. The
parties agreed policies which should be implemented to complete the second
review under the Extended Fund Facility. These policies are subject to approval
by IMF management and the Executive Board and are a basis for the decision on
providing the next tranche to Ukraine.
The Extended Fund Facility is aimed to increase the reserves
of the Ukrainian National Bank, to stop the exodus of capital, to enhance the
measures taken by the Ukrainian government to stabilize the country’s balance
of payments as well as to help Ukraine overcome structural problems in its
economy by implementing overdue reforms.
In line with the EFF arrangements, Ukraine has already
implemented a number of key reforms in the energy and banking sectors as well
as reforms aimed to enhance the independence of the National Bank, to recover
the public finance, to transform state-owned companies and to tackle
Also, key areas for future reforms in Ukraine were agreed.
For a successful consideration of the EFF by the Executive Board expected in
July 2016, Ukraine should intensify its efforts to entrench financial stability
as well as to improve transparency and to ensure the rule of law.
The successful review under the Extended Fund Facility by
the IMF will entitle Ukraine to receive the next tranche to increase the
reserves of the National Bank of Ukraine, which should strengthen and stabilize
Ukraine’s national currency, contribute to establishing a stable and
predictable investment and business climate as well as boost economic growth.