Ukraine may receive $8 billion after IMF program is unblocked

A new program from the IMF will facilitate Ukraine’s access to funding worth $8 billion, which will help maintain a fairly stable hryvnia exchange rate next year, stated by Anders Aslund, an analyst at an American center, the Atlantic Council in an interview with the Ukrainian service of the Voice of America.

“Most likely, Ukraine will now receive $2 billion from the IMF, as well as $ 2 billion from the EU and the World Bank. The Ukrainian government can sell Eurobonds for additional $2 billion. In addition, state companies are likely to sell Eurobonds for $2 billion or more,” Aslund said.

“This should be enough for Ukraine to maintain a stable exchange rate next year,” he said.

In addition, the analyst said that the program from the IMF will allow resolving two main problems that caused concern, in particular, the limited reserves of the National Bank of Ukraine and the limited budget funds.

The new program from the IMF will increase the currency reserves of the central bank, which now amount to about $16.6 billion, which, according to the analyst, is the ‘absolute minimum’.

"The reserves will grow to about $25 billion. This will be enough for Ukraine for next year when elections are held," Aslund said.

On October 19, Ukraine and the IMF agreed on a new program worth $ 3.9 billion.

  Ukraine, IMF, Sweden, Aslund, G7