You're reading: IMF chief urges Ukraine to implement policy package to continue stand-by program

Managing Director of the International Monetary Fund (IMF) Christine Lagarde has urged the Ukrainian authorities to continue the implementation of reforms, including the package of measures needed to complete the first review of the stand-by program of cooperation with the fund, according a statement released by the IMF on July 28.

Lagarde discussed the latest political developments and the efforts
of the Ukrainian authorities to implement reforms supported by the IMF
program at a meeting with Governor of the National Bank of Ukraine (NBU)
Valeriya Gontareva and Foreign Minister Pavlo Klimkin in Washington on
July 28.

As reported, the IMF Executive Board on April 30 approved a two-year Small Business Administration (SBA) worth Special drawing rights (SDA) 10.976 billion (about $17.01 billion) for Ukraine. Early
in May, the IMF transferred the first tranche worth SDR 2.058 billion
(about $3.2 billion), with SDR 1.29 billion (about $2 billion) allocated
to the Ukrainian government for budget support.

The IMF mission arrived in Ukraine for the first review of the
program on June 24 and worked until July 18. As part of the first review
the sides discussed the adjustment of the macroeconomic forecast and
the state budget for 2014, including due to the unstable situation in
Donetsk and Luhansk regions.

Last week, Ukrainian President Petro Poroshenko and Prime Minister
Arseniy Yatseniuk held telephone conversations with Lagarde, during
which they assured her of the country’s readiness to fulfill all
obligations under the stand-by program. According to Poroshenko, the
Ukrainian authorities and the IMF mission developed an adjusted reform
plan for the implementation of the program with a view to its further
coordination at a meeting of the IMF Executive Board due in the second
half of August.

Lagarde, in turn, warned Ukrainian politicians of populism and extra
promises during the election campaign, as in the current financial and
economic situation in the country they cannot be fulfilled.

In case of a positive decision of the Executive Board, Ukraine will
receive the second tranche of a loan worth about $1.4 billion.