IMF: New tranche for Ukraine only possible once Ukraine has fulfilled its obligations

The fourth revision of the International Monetary Fund’s (IMF) program as part of the Extended Fund Facility (EFF) will be possible only once the Ukrainian authorities have fulfilled the obligations they have taken on, said IMF permanent representative Gösta Ljungman.

“A fourth revision of the IMF board of executive directors’ program will be possible only after the necessary measures are taken for completing this revision. It will focus on pension reform, on measures aimed at speeding up privatization, as well as providing concrete results in anti-corruption activities. Just as important is to adhere to the program and comply with all the previously achieved agreements concerning measures in the fiscal and energy sectors,” he said.

However, during a speech at the Brookings Institution in the US on September 18, IMF managing director Christine Lagarde commented that the investigators at the prosecutor general’s office need to be given broader powers.

“The series of reforms, including the bureau to fight corruption, are only the first step. The investigators need broader powers to prosecute suspected criminals, and the prosecutors need to be authorized to press charges in the anti-corruption court,” she said.

Analysts from the Morgan Stanley investment bank believe that Ukraine will most likely receive a fifth IMF tranche after the fourth revision of the EFF program.

  IMF, tranche, Ukraine