The G7 Finance Ministries (Canada, France, Germany, Italy, Japan, the UK and the U.S.) and the European Commissioner for Economic and Financial Affairs have welcomed quick and decisive actions of the Ukrainian authorities to amend to the budget and in adopting the economic reforms package on March 2.
“This legislation makes significant progress toward implementing the prior actions on a new economic reform program that will be supported by a four-year IMF Extended Fund Facility,” reads the statement issued by G7 Finance Ministries, posted on Ukrainian Finance Ministry’s website on March 4.
According to the statement, the G7 looks forward to a positive consideration of the Ukrainian program by the IMF Executive Board.
“The program will provide front loaded additional financing to swiftly help Ukraine with the ongoing ambitious economic reform process. This program is also backed by substantial financial assistance from the G-7 and other partners, and it will catalyze support from the multilateral development banks,” reads the statement.
The statement also says that Ukraine will also receive considerable financial aid from the G7 countries and other partners, which will help to mobilize support from other international financial institutions.
“In our view Ukraine’s economic reform agenda includes all the necessary elements to support immediate economic stabilization in Ukraine as well as a set of bold policy reforms aimed at restoring robust growth over the medium term and improving the living standards of the Ukrainian people,” the statement reads.
“We are confident that Ukraine will successfully implement its ambitious reform agenda. Both the reform program and its swift implementation will at the same time boost confidence in financial markets and in the Ukrainian currency. In this context, we welcome the monetary policy actions announced by the Ukrainian authorities on March 3, 2015 as a useful step toward reducing pressures on the foreign exchange market,” reads the statement.
“The international community stands ready to back Ukraine as it implements reforms at this critical moment in its history,” the G7 Finance Ministries added.
As reported, U.S. President Barack Obama and the leaders of the UK, France, Germany, and Italy, and the president of the European Commission have agreed to provide help to improve the Ukraine’s economy.
As reported, the International Monetary Fund (IMF) Board is expected to discuss a new Extended Fund Facility (EFF) for Ukraine worth $17.5 billion. The approval of this program is expected to pave the way for other international financial institutions and partner countries to approve assistance for Kyiv amounting to $7.5 billion within the next twelve or eighteen months, as well as to create the conditions enabling the restructuring of commercial debt, which will help save $15 billion.
