Timing of next Ukraine wire could be clarified soon, IMF says

The IMF will be in a better position to determine the timing of the fourth tranche to Ukraine after the mission in Kyiv completes its work, IMF spokesman Gerry Rice told a press briefing on Nov. 10.

The staff mission, which arrived last week, is now conducting the third review of its External Funds Facility program that will assess progress on its implementation and will be “looking beyond the medium-term challenges facing Ukraine, including the need to accelerate the economy’s structural transformation to achieve stronger growth,” Rice commented.

Recall that a day earlier, the head of Ukraine’s central bank commented to the Reuters news agency that the next IMF tranche – worth USD 1.3 bln and scheduled for mid-November – might be delayed beyond 2016.

Alexander Paraschiy: Ukraine’s government did little to implement any of the structural benchmarks required for the approval of the next IMF tranche, namely the submission to parliament of legislation creating an agricultural land market and improved targeting of utility subsidies for the public. Moreover, the government added more uncertainty to the 2017 fiscal deficit with new populist proposals, such as doubling the minimum wage as of Jan. 1. All this makes it impossible for Ukraine to secure the next IMF tranche by the year’s end, in our view.