Ukraine receives USD 1.39 bln from the IMF

Макроэкономика 05.09.2014 The Ukrainian government received a second tranche of USD 1.39 bln as part of its stand-by arrangement with the IMF, the Cabinet of Ministers reported on Sept. 4. The disbursement was approved on Aug. 29 after the first review of Ukraine’s loan performance was completed. The IMF was satisfied with Ukraine’s handling of the program implementation. At the same time, it recognized that the armed conflict in the east is taking its toll on the economy and society. In view of that, the Fund approved waivers on some performance criteria. Alexander Paraschiy: The tranche’s disbursement is already having a calming effect on the ForEx market, where confidence will strengthen. With this money in hand, the redemption of USD 1.6 bln in Naftogaz Eurobonds this month looks very likely. In light of the positive fiscal developments (revenue grew 15.8% yoy in August owing to approved budget amendments), we have also positive expectations about the next IMF tranche (USD 2.8 bln), which should arrive in December.