Ukraine expects USD 10 bln in first IMF wire, deputy minister claims
2 March 2015
The Cabinet of Ministers of Ukraine expects the IMF will provide USD 10 bln in the first wire of the four-year, USD 17.5 bln extended fund facility, Deputy Finance Minister Ihor Umanskiy reported on Feb. 28. The IMF executive board said it will consider approval of the loan on March 11.
After the new loan was extended on Feb. 12, Finance Minister Natalie Jaresko said on Feb. 16 that she hopes to receive USD 10.8 bln in support (60% of the IMF loan) this year. To receive the funds, Ukraine has to approve budget amendments. Voting for the amendments is scheduled for today’s session of parliament.
Alexander Paraschiy: USD 10 bln arriving in March would be a strong signal of stabilization for the economy and the markets. We can’t predict the likelihood of the IMF’s approval nor the amount of what the first tranche will be. However, such support will remove any concerns regarding Ukraine’s solvency over the next year and will unlock extra funding from other IFIs, which could go a long way to prevent further hryvnia devaluation.
