Representatives of Ukraine and the managing Director of the International monetary Fund Christine Lagarde discussed the Outlook for the economy of Ukraine, development program and conditions for the grant of a new tranche of lending, said Ukrainian Finance Minister Natalie Jaresko.
DAVOS, Jan 21. The representatives of Ukraine discussed on Thursday with the managing Director of the International monetary Fund (IMF) Christine Lagarde lending program of the country and the plan for the near future.
“Discussed economic development, the Outlook for the economy (of Ukraine — ed.), our software, what will work in the near future. Try to finish the negotiations on the Memorandum that in the near future to have the opportunity the next tranche, possibly after the second review (review of program lending — ed.)”, — Yaresko told journalists.
In addition to Jaresko, in a meeting with Lagarde in Davos was attended by President of Ukraine Petro Poroshenko and the head of national Bank Valeria Gontareva.
The four-year program of financial assistance to Ukraine was approved by the IMF Board on March 11. The programme envisages allocating the Fund’s $ 17.5 billion dollars, and all international creditors in four years ─ $ 40 billion. In March he was transferred the first tranche of 5 billion dollars, in August — the second tranche of 1.7 billion. Now Kyiv expects the allocation of the third tranche, also with a volume of 1.7 billion dollars, one of the obstacles along the way for adoption of the budget, based on agreed with the IMF reforms.
In addition, there is the aspect of default on debt to Russia to $ 3 billion. The IMF, though has changed its rules of lending countries, agreeing to assist States, committed defaults on sovereign debt, however, set the requirement: the recipient country of credit must prove that they made good faith efforts to negotiate with the lender to avoid a default.
Earlier, a source at the IMF said that in the case of requirements of the Russian Federation to stop the assistance program for Ukraine, the Fund would need to convene a special meeting of the Board of Directors to make a decision about how to behave in good faith, the debtor and the creditor. Of its agreement or disagreement of the Russian Federation will have to declare before each new tranche from the IMF. Therefore, the rhetoric of the Ukrainian authorities relented. They will need to prove that they are bona fide borrowers, said the source.