At the end of the meeting, the parties noted that Ukraine and the International Monetary Fund had reached an agreement (staff level agreement) on a new cooperation programme. “International Monetary Fund (IMF) staff and the Ukrainian authorities have reached a staff-level agreement on economic policy for a new 18-month confirmation agreement (SBA). The new SBA, which has requested access of SDR 3.6 billion ($5 billion), aims to provide balances of payments and budgetary support to help the authorities cope with the effects of the COVID 19 shock, while consolidating previous results and pursuing major structural reforms aimed at reducing key weaknesses. This will ensure that Ukraine is well equipped to return to growth and resume its broader reform efforts after the end of the crisis. The agreement should also benefit from additional bilateral and multilateral financial assistance. The agreement is subject to IMF management approval and approval by the IMF Executive Committee. Following Parliament`s approval of a 2019 budget in line with IMF recommendations and higher gas and heating rates for households, gas and heating rates for households are expected to increase later this year, while reflecting market developments while continuing to protect low-income households. Kyiv. May 22 (Interfax) – The International Monetary Fund (IMF) and the Ukrainian authorities have reached a staff-level agreement on economic policy for a new $5 billion (SBA) arrangement to help Ukraine cope with the coronavirus pandemic, as announced by the IMF in a statement released Friday morning.
“The policy of the new regime, jointly developed by the Ukrainian authorities and the Fund staff, aims to address the many challenges facing the Ukrainian economy. Economic activity contracted by about 7 to 71.2% of GDP in 2014, affected by the conflict in eastern Ukraine, which has weighed heavily on industrial and export base, undermined confidence and put pressure on the financial system. The economic reform agenda focuses on immediate macroeconomic stabilization and comprehensive and deep structural reforms to lay the foundations for strong and sustainable economic growth over the medium term. The agreement, subject to the agreement of the IMF Executive Council, aims to provide balance of payments and budget support and “will ensure that Ukraine is well equipped to return to growth and resume a broader reform effort after the end of the crisis,” Ivanna Vladkova Hollar, head of the IMF`s Ukraine mission, said in a statement.