Gov’t VAT debt reduced to UAH 3 bln, in line with IMF requirements

According to PM Mykola Azarov, the government’s VAT debt to exporters was reduced to UAH 3 bln as of October 1st. This is one of the IMF conditions to extend the second USD1.5 bln tranche of the stand-by program to Ukraine. The first USD 1.9 bln tranche was extended in July. The IMF will initiate a program review to make a decision on the second tranche by the end of October. Mykyta Mykhaylychenko: We believe it likely that Ukraine will receive the second tranche in November-December. According to the memorandum between the Ukrainian government and the IMF, signed in July, the government has to reduce its VAT debt to zero by year-end as one of the conditions for successful program continuation