Ukraine may lose chance to get EUR 0.6 bln from EU, ambassador says

An EU macro-financial assistance (MFA) loan program to
Ukraine expires “in the coming days” and cannot be extended, raising the risk
that Ukraine may not get the last EUR 600 mln tranche, the
eurointegration.com.ua news site reported on Nov. 22, citing EU Ambassador to
Ukraine Hugh Mingarelli. He listed four requirements for the next tranche that
Ukraine has yet to fulfill: 1) ending a moratorium on timber exports, 2) launching
automatic reviews of electronic asset and income declarations, 3) adopting a
law creating a credit register and 4) launching an electronic system that
identifies the beneficiary owners of companies.

In her turn, Ukraine’s deputy prime minister for
European integration told Interfax-Ukraine the same day that Ukraine is still
counting on the EUR 600 mln tranche. She said Ukraine is still in talks with
the EU to secure the tranche and is aiming for a compromise in which it will
receive at least some portion.

The macro financial assistance program (MFA III) of
the EU was launched in July 2015 with a total amount of EUR 1,800 mln. The
initial plan foresaw three loan tranches for Ukraine, EUR 600 mln each, to be
provided in 2Q15 (upon the program’s launch), 3Q15 and 1Q16. Ukraine was able
to receive the second tranche only in 2Q17.

Alexander Paraschiy: The program’s loans are available only for 2.5 years since its launch,
meaning the deadline for the last tranche is Jan. 3, 2018. With its lengthy To
Do list, chances are slim that Ukraine will be able to get any additional
money. Indeed Ukraine’s central bank has already assumed the absence of the
third tranche in its latest inflation report.