IMF grants $5.5 billion loan to Ukraine

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The International Monetary Fund (IMF) has reached an agreement with Ukraine for a loan of $5.5 billion and maturing in three years.

IMF Director-General Kristalina Georgieva announced the agreement between the financial entity and Kiev on Saturday. According to Georgieva, the measure needs to be approved by management and the Executive Council to take effect.

“I had a very constructive call with President Volodymyr Zelenskyi today. During our conversation, I commended the President for the impressive progress that he and his government have made in the past few months in advancing reforms and continuing with sound economic policies,” she said, adding that she “assured the President of the IMF’s readiness to support the authorities’ policy agenda to maintain macro-economic stability and lift the economy to a path of higher, sustainable, and inclusive growth, including with a new IMF-supported program.”

“I was pleased to note that IMF staff has reached agreement with the authorities on the policies to underpin a new 3-year, SDR 4 billion (about US$ 5.5 billion) arrangement under the Extended Fund Facility. This agreement is subject to IMF management approval and to approval by the Executive Board, and effectiveness of the arrangement will be conditional on the implementation of a set of prior actions,” she added.

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“The President and I agreed that Ukraine’s economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests in the economy, and that it is paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions,” she concluded.

Meanwhile, Russia and Ukraine have decided to renew their current Russian oil supply contract to Europe via Ukrainian territory for another ten years.

The information was confirmed on Tuesday by the Ukrainian oil transport company, Ukrtransnafta, through its Facebook. The contract, signed today with Russia’s Transneft , is valid from January 1, 2020 to January 1, 2030.

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