The IMF has published the conditions for granting Ukraine the 700 millionth tranche in order to receive a tranche of $ 700 million. The corresponding document is published on the website of the organization. Among the conditions for providing financial assistance to Ukraine, the IMF named ensuring the independence of the central bank.
The fund also demanded a change in monetary policy to bring inflation back to target levels. In addition, the Ukrainian authorities have pledged to better manage banks in order to “resume reliable lending to the private sector.” The IMF said that Ukraine should introduce tighter fiscal measures to ensure debt sustainability.
One of the conditions for the transfer of the tranche was the fight against corruption, reducing the role of the state and corporate interests in the economy. According to the fund, the Ukrainian authorities need to take such measures to improve the business climate, attract more investment and increase the potential of the economy.
On November 23, President Volodymyr Zelenskyy announced that Ukraine had received the next tranche from the IMF. According to the President, these funds will be used to support the financial system of Ukraine and the fight against the consequences of the coronavirus pandemic. A new program to support the country for a period of one and a half years and a total amount of $ 5 billion was approved by the IMF in the summer of 2020. Kiev has already received more than two billion from this amount.
In October, Ukraine also received 600 million euros from the European Union. The tranche was part of a € 3 billion emergency package for ten neighboring EU partner countries. Financial assistance will be aimed at recovering economies after the coronavirus pandemic. According to the Vice-President of the European Commission for Economic Affairs Valdis Dombrovskis, the tranche was transferred after “the country fulfilled the agreed political conditions.”