Media: IMF’s new program for Ukraine has four conditions

In order to be considered for a new International Monetary Fund (IMF) program, Ukraine must meet at least four conditions, Evropeiska Pravda reports.

“It is already clear that Ukraine does not comply with 100% of the Extended Fund Facility (EFF) program signed in 2015,” the article observes.

This is why the parties have put their money on a second option: to agree on a new, shorter collaboration program. According to government sources, the program in question would be a stand-by program for $5-6 billion and for 12-15 months.

Between September 6-19, an IMF delegation came to Ukraine to negotiate a new program, but no agreement was reached. Discussion centered on four primary issues.

One of the primary issues was the gas price. On this matter, the following was reportedly agreed on: by October 15, the government is to decide to raise the gas price by 23%.

The new stand-by program may include an anticorruption aspect. Sources familiar with the IMF’s stance say that there is discussion on the reallocation of the function of auditing electronic declarations to the National Anti-Corruption Bureau of Ukraine.

Another important issue is the balancing of the budget. Sources say that the new program with the IMF may entail another phase of reformation of the State Fiscal Service. “The approach to its transformation may change, even towards the reorganization of customs and tax as united legal entities,” the article states.

Earlier the National Bank of Ukraine confirmed two of the IMF’s conditions, but spoke about the need to raise gas prices and correct the government budget.

This is the second year that Ukraine has been waiting for a fifth IMF tranche. The National Bank is expecting the IMF’s decision on the tranche by the end of the year.

  Ukraine, IMF, NBU