IMF wants more progress from Ukraine for new tranche

Last June, the IMF approved the $5 billion loan programme and disbursed the first tranche of $2.1 billion to help the Ukrainian economy, which has been hit hard by the coronavirus pandemic. Further loans have been frozen due to the slow pace of reforms in Ukraine.

An International Monetary Fund mission held productive talks with Ukraine, but the country must show more progress on reforms to reach an agreement for a new tranche under the $5 billion programme, the IMF representative in Kyiv said on Saturday.

"Discussions will continue", Goesta Ljungman said in a statement. The discussions focused on strengthening governance of the National Bank, improvements to the legislative and regulatory framework for bank supervision and resolution, policies to reduce the medium-term fiscal deficit, legislation restoring and strengthening the anti-corruption framework and the judiciary, as well as on energy policy, he said.

Ukraine expects to receive $2.2 billion spread across three equal tranches from the IMF in 2021, Central Bank Governor Kyrylo Shevchenko told Reuters. Last June, the IMF approved the $5 billion loan programme and disbursed the first tranche of $2.1 billion to help the Ukrainian economy, which has been hit hard by the coronavirus pandemic.

Further loans have been frozen due to the slow pace of reforms in Ukraine. The IMF was also concerned about the government's decision made in January to regulate household gas prices.