International Monetary Fund (IMF) staff and the Ukrainian authorities have agreed on the economic policy of a new 14-month stand-by agreement (SBA). The new SBA will replace the agreement approved in March 2015 under the Extended Facility of Funds (EFF) (see Press Release No 15/107), which expires in March 2019. „International Monetary Fund (IMF) staff and the Ukrainian authorities have reached an agreement at the staff level on economic policy for a new 18-month stand-by agreement (SBA). The new SBA, with a demand for access of SDR 3.6 billion ($5 billion), aims to provide balance of payments and budget support to help the authorities cope with the effects of the COVID-19 shock, while consolidating successes so far and promoting important structural reforms to address key weaknesses. This will ensure that Ukraine is well placed to return to growth and revive broader reform efforts when the crisis ends. The agreement is also expected to catalyze additional financial support, bilateral and multilateral. Washington, DC – A team of International Monetary Fund staff, led by Ivanna Vladkova Hollar, held remote talks with Ukrainian authorities on May 21 and reached a joint-level agreement on economic policy for an 18-month new stand-by agreement (SBA). „Today I had a very constructive conversation with President Volodymyr Selenskyj. During our meeting, I congratulated the President on the impressive progress made in recent months by him and his government in promoting reforms and pursuing sound economic policy. I assured the Chair of the IMF`s willingness to support the authorities` political agenda to maintain macroeconomic stability and put the economy on a path to higher, sustainable, and inclusive growth, including with a new IMF-financed program. I was pleased to note that the IMF General Staff reached an agreement with the authorities on policy in support of a new 3-year agreement of SDR 4 billion (about $5.5 billion) under the Extended Fund Facility.
This agreement is subject to imf management approval and Executive Board approval, and the effectiveness of the agreement is contingent on the implementation of a series of previous measures. The President and I agreed that Ukraine`s economic success depended decisively on strengthening the rule of law, improving the integrity of justice and reducing the role of special interests in the economy, and that it was of the utmost importance to preserve the benefits of the consolidation of the banking system and to cover the high costs to taxpayers of bank resolution. Selenskyj, the National Bank of Ukraine and the previous national government concluded a staff-level agreement with the IMF in early December 2019 to open a new three-year EFF program worth $5.5 billion. . . .