Ukraine anticipates IMF wire in August, the earliest

Ukraine will receive the second IMF loan tranche worth USD 1.7 blnunder the Extended Fund Facility (EFF) program in August, assuming parliament approves five crucial items of legislation next week and there is high probability that the program is fully financed, stated Deputy Finance Minister Artem Shevelev during a July 9 briefing. Among the bills that parliament should vote for is a measure improving payment discipline in the energy sector (and allow the bankruptcy of those enterprises that can’t pay for natural gas supplies), legislation related to the activity of the Anti-Corruption Bureau, and legislation related to deposit guarantees and bank bankruptcy procedures. Initially, the second wire was scheduled for June. Receiving funds in July is also out of the question, Shevelev said, according to the Interfax news agency.

Alexander Paraschiy: We are confident the second IMF wire will be arranged in the nearest future. A staff-level agreement has already been reached and the IMF made it clear that Ukraine’s current debt restructuring problems will not impede further cooperation. What’s more, the legislation that should be approved by parliament is not politically sensitive. Thus, we do not expect problems with those bills being approved. At the same time, this delay with the second wire means that the initial schedule of IMF transfers will shift significantly. We anticipate Ukraine to soon ask the IMF to merge the third and fourth wires into one tranche to cover foreign currency needs for this year.