Ukraine president secures USD 1 bln in loan guarantees from U.S.

Ukrainian President Petro Poroshenko secured an anticipated third tranche of U.S. loan guarantees worth USD 1 bln in a May 13 telephone conversation with U.S. Vice President Joe Biden, Interfax-Ukraine reported. The agreement will be signed “in the nearest future” after the first agreement on USD 1 bln in U.S. loan guarantees was signed in 2014 and the second in 2015.

Biden welcomed the appointment of Ukraine’s new prosecutor general and confirmed America’s readiness to support reforms in the prosecutor general’s office and the fight against corruption, the report said. In his turn, Poroshenko discussed measures to improve the system of state finances and the business climate in Ukraine. He also expressed his hope that reforms in Ukraine will lead to support from not only the U.S., but the IMF and other international partners.

Alexander Paraschiy: We still expect the U.S. loan guarantees will be made available only once the IMF releases its next tranche for Ukraine, all of which was planned for the year’s first months. Yet the timetable was disrupted by the February corruption scandal, with the new schedule aiming for the USD 1.7 bln IMF tranche being agreed upon by the end of June. An IMF mission is currently working in Kyiv and parliament has demonstrated readiness to approve the necessary legislation. We expect the IMF tranche will arrive by the end of August, with a subsequent tranche in the same value by the year end.

 telephone conversation with U.S. Vice President Joe Biden, Interfax-Ukraine reported. The agreement will be signed “in the nearest future” after the first agreement on USD 1 bln in U.S. loan guarantees was signed in 2014 and the second in 2015.

Biden welcomed the appointment of Ukraine’s new prosecutor general and confirmed America’s readiness to support reforms in the prosecutor general’s office and the fight against corruption, the report said. In his turn, Poroshenko discussed measures to improve the system of state finances and the business climate in Ukraine. He also expressed his hope that reforms in Ukraine will lead to support from not only the U.S., but the IMF and other international partners.

Alexander Paraschiy: We still expect the U.S. loan guarantees will be made available only once the IMF releases its next tranche for Ukraine, all of which was planned for the year’s first months. Yet the timetable was disrupted by the February corruption scandal, with the new schedule aiming for the USD 1.7 bln IMF tranche being agreed upon by the end of June. An IMF mission is currently working in Kyiv and parliament has demonstrated readiness to approve the necessary legislation. We expect the IMF tranche will arrive by the end of August, with a subsequent tranche in the same value by the year end.