The second tranche of the International Monetary Fund to Ukraine in the amount of $1.7 billion, which is expected in the next few days, will be used to replenish the reserves of the National Bank of Ukraine, the press service of the Finance Ministry has said. Part of it will be allocated to pay debts for gas, Vice Prime Minister Hennadiy Zubko has stated.
“Part [of the funds] will be used to support and stabilise Ukraine’s financial system. Part will be spent on payments for gas and debts for the previous periods,” Zubko said on the air of TV Channel Five.
He noted the IMF tranche is issued as macro financial aid, the money will be managed by the Ministry of Finance.
“The Ministry of Finance welcomes the decision of the IMF Executive Board to grant the second tranche of $1.7 billion to Ukraine within the four-year Extended Fund Facility (EFF) program. The tranche expected in the coming days will be used to replenish the NBU reserves,” the ministry said.
The EFF program of funding is a major component of the Finance Ministry plan to stabilize Ukraine’s economy and lay foundation for the restoration of its growth starting from 2016.
“Combined with the deep and ambitious reforms, implemented by the government of Ukraine, the obtaining of a new tranche will contribute to further economic recovery and strengthening confidence in the financial market both on the part of investors and Ukrainian citizens,” the agency said.
The decision on the issue of the second tranche became possible thanks to Ukraine’s progress in implementing a number of reforms supported by the government and the IMF. In particular, it concerns the reforms, whose implementation became possible due to the Verkhovna Rada’s adopting four bills on July 16 that make a significant step in reforming the public finance sector, strengthening the protection of rights of Ukrainian depositors, and the anti-corruption field.
