Ukraine asks IMF to direct third tranche to budget deficit

The Cabinet of Ministers of Ukraine has requested the International Monetary Fund to increase the size of the third tranche of its total USD 16.5 bln standby loan by USD 0.6 bln to USD 3.8 bln, and to direct the entire amount to plug the budget gap, Acting Finance Minister Ihor Umanskiy said in an interview with Zerkalo Nedeli. The IMF mission to consider disbursal of the loan is due to arrive in Ukraine June 24-26. Andrii Parkhomenko: We think direction of the funds into the budget deficit is more preferable than into NBU reserves – USD 3.8 bln could cover the majority of this year’s budget shortfall (which we estimate at USD 5.5 bln this year), all the more given that USD 1.4 bln has already been directed into the budget. Meanwhile, in the coming months the NBU should be capable of tackling forex market imbalances without needing more funds from the IMF.