Third money tranche from the International monetary Fund (IMF) for a total of $1 billion came to Ukraine, UNIAN reports. The Agency refers to information of the National Bank of Ukraine. The head of the national Bank (NBU) Valeriya Gontareva reported the receipt of notification of the IMF, according to which the money was supposed to go on Friday.
The decision on the allocation of Ukraine the next tranche of the loan in the amount of 716 million SDR (special drawing rights of the IMF), approximately $1 billion, was adopted by the Board of Directors of the Fund on the night of 15 September 2016. Russia’s representative to the IMF Board, as promised earlier, Finance Minister Anton Siluanov, voted against the disbursement of a tranche. Russian authorities disagree with the fact that Kiev has fulfilled all conditions to receive the next credit tranche (including in connection with the refusal of arranging Russian way to solve the issue of restructuring the debt of Ukraine to Russia for $3 billion) and considered the resumption of lending to Ukraine by the IMF by breaking the rules of the Fund.
President of Ukraine Petro Poroshenko called the decision against Russia considers the decision “a signal to the aggressor.” “Russia’s attempts to undermine the solidarity of the IMF with Ukraine and frustrate the decision on the tranche failed. The Kremlin has lost in this operation. Reforms that make us stronger, however, becomes stronger and our ability to counter external aggression”, — Poroshenko said.
Kiev promised to spend the allocated IMF funds will be used to increase international reserves of the NBU. The Finance Ministry of Ukraine stressed that the funds “will contribute to stability of hryvnia exchange rate, and hence the stability of the financial system of the country. The national Bank of Ukraine reported that the selection of a new IMF loan Ukraine opens possibilities to obtain new loans on the external market. In particular, Ukraine may get $1 billion from the placement of Eurobonds under guarantee of the U.S. Treasury and to attract €600 million from the European Union.
Analysts international rating Agency Fitch has called for a new tranche of the IMF loan “a positive step”, which, however, does not remove the questions about the ability of Ukraine agreed to Fund reform.