Ukrainian Vice Premier Sergiy Tigipko has said he is convinced that the International Monetary Fund (IMF) Stand-By Arrangement approved for Ukraine will boost the country's international sovereignty rating and bring in more foreign investment.
"The program of cooperation with the IMF will promote an increase in Ukraine’s international sovereignty rating, which in turn, will lead to a rise in foreign investment in the economy of our state," the cabinet’s press service said, citing Tigipko.
Tigipko said that the IMF Executive Board unanimously approved a new Stand-By Arrangement of $15.5 billion for Ukraine, which is evidence of support from the international community for Ukraine’s reform course, which is aimed at achieving economic growth of and increasing Ukrainians’ standard of living.
The resumption of cooperation with the IMF opens new opportunities for economic growth and the improvement of Ukraine’s image on the international arena, Tigipko said.
He added that the unanimity in approving of the Stand-By Arrangement was a rare case in the approval of IMF financial programs that are partly aimed at budget financing.
He also said that Ukraine fulfilled all of the IMF’s requirements, proving the feasibility of the revenues target of the budget and the introduction of realistic reforms that would increase Ukraine’s competitiveness on the international markets and would promote a rise in Ukrainians’ standard of living.
He said that the new IMF program would last for two and a half years. The first loan tranche, which Ukraine could receive in the next few days, is to be $1.89 billion and would be used to increase the National Bank of Ukraine’s forex reserves, as well as partly cover the budget deficit this year.
A second tranche is scheduled for disbursal in December 2010.
The vice premier said he was confident that the resumption of Ukraine’s cooperation with the IMF would give an important positive signal to international investors and allow the country to raise funds from other international financial institutions.
