The International Monetary Fund (IMF) has reached an agreement with Ukraine on an updated Memorandum of Economic and Financial Policies. As a result, during the second half of March, IMF’s Executive Board will consider the allocation of another tranche of $1 billion to Kyiv, as was indicated in the Fund’s press release on Saturday, March 4th.
In March 2015, the IMF approved a four-year loan program worth USD 17.5 billion to support economic reforms in Ukraine. It provided for quarterly allocations of funds to Kyiv. The first two tranches of $5 billion and $1.7 billion, were transferred in March and August 2015 respectively.
After that however, there was a pause in the lending program due to Ukraine’s non-fulfillment of conditions demanded by the Fund. The third tranche of $1 billion followed in September 2016, after the new Cabinet of Ministers headed by Volodymyr Groysman came to power.