Ukraine ‘to get $1.7bn funding from IMF within months’

International Monetary Fund
Corbis

The International Monetary Fund may resume credit to Ukraine in the coming months, according to the international rating agency Moody’s.

In its review, Moody’s noted the Ukrainian government’s progress in reforming the country’s economy and cutting deficit in public finances, Reuters reports.

“Ukraine’s progress on political and economic reforms stalled during budget preparations late last year and more recently during the drawn-out formation of a new government coalition that was finally resolved on April 14. The new government, however, has moved quickly to renew the reform agenda, addressing a number of issues as required by its international backers,” the report reads.

With an IMF mission in Kiev to recommence the review, Moody’s expects that the IMF could disburse a long-awaited USD 1.7 billion tranche from the program before mid-year.

The four-year Extended Fund Facility program worth about USD 17.5 billion originally foresaw quarterly reviews of the program, the disbursement of four tranches to Kiev in 2015, another four in 2016. However, at present, the country received only the first tranche worth USD 5 billion on March 13, 2015, and the second one worth USD 1.7 billion arrived on August 4, 2015.

The second review is currently under way, as Ukraine and the IMF are in talks on a wide range of issues, which includes various aspects of monetary, banking and anti-corruption policies, the pension reform and the privatization process.

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