IMF may allocate two more tranches to Ukraine by the end of 2019

The new 14-month Stand-By Arrangement or SBA for Ukraine envisages the allocation of three tranches of funds, two of which amount to the equivalent of $2.6 billion dollars, by the end of 2019, reported Ukrinform, citing the IMF’s recent analytical report.

There are three dates in the timetable of the planned review of Ukraine's implementation of the program’s conditions after which the Fund's Executive Board must decide whether to allocate the next tranche. The first date was December 18, 2018 when the new stand by program for Ukraine was approved by the Fund's management to allocate $1.4 billion dollars as the first tranche.

The allocation of the second and third tranches are provided after the completion of IMF reviews planned for May 15 and November 15, 2019. The tranches are expected to be $1.3 billion each.

In December, the Board of Directors of the IMF approved a new Stand-By Arrangement for Ukraine. The arrangement amounts to the equivalent of $2.8 billion in Special Drawing Rights or about $3.9 billion, which is 139% of quota. 1 billion SDR or about $1.4 billion will be allocated immediately while another will come after half-year revisions.

In 2019, Ukraine should pay over $1.8 billion dollars to the IMF. The first two payments are scheduled for February.

  Ukraine, IMF