Thursday26 December 2024
g-novosti.in.ua

The National Bank anticipates a decision from the IMF Board of Directors regarding a $1.1 billion tranche in the second decade of December.

The final decision of the International Monetary Fund (IMF) regarding the sixth review of the Extended Fund Facility (EFF) program and the allocation of the seventh tranche of approximately $1.1 billion to Ukraine is anticipated on December 2, as reported by the National Bank of Ukraine.
Нацбанк anticipates a decision from the IMF board regarding a $1.1 billion tranche in the second decade of December.

The final decision of the International Monetary Fund (IMF) regarding the sixth review of the Extended Fund Facility (EFF) program and the allocation of the 7th tranche to Ukraine, amounting to approximately $1.1 billion, is expected on December 2, reported the National Bank of Ukraine.

"Ukraine has reached a staff-level agreement on the sixth review of the program with the IMF. This decision is set to be considered by the IMF Board of Directors in the second decade of December," the information on the NBU website states following a meeting between the central bank's leadership and the heads of 30 largest banks in the country this week.

As previously reported, the IMF announced on November 19 that a staff-level agreement (SLA) had been reached regarding the sixth review of the four-year EFF program with Ukraine, following a mission in Kyiv from November 11-18.

"The authorities have met all quantitative performance criteria (QPC) as of the end of September and the structural benchmarks for the review. Agreements have also been reached on several policies and reforms to maintain macroeconomic stability amid the ongoing war," the release notes.

Subsequently, the President of Ukraine signed the law on the state budget for 2025 and tax amendments raising the military tax from 1.5% to 5% starting December 1, along with several other taxes and fees, while the government approved the policy on state property and independent members of the supervisory board of "Ukrenergo".

According to a source in financial circles who spoke to Interfax-Ukraine, the program may be supplemented by about three new structural benchmarks, one of which pertains to the assessment and plans of the National Securities and Stock Market Commission of Ukraine. Another source suggested that the Board of Directors might consider the issue of the sixth review at the very beginning of the third decade of December.

As reported, Ukraine received the 6th tranche of $1.1 billion on October 23 of this year following the 5th review of the EFF program, which was opened in March 2023, bringing total disbursements to $8.7 billion out of a total program volume of $15.6 billion.

In the updated program following the 5th review, changes were made at Ukraine's request to the schedule of program reviews and the tranches resulting from them. Previously, it anticipated only two reviews for 2025 – at the beginning of March and at the end of August, with respective tranches of $917.5 million. Now, the schedule for next year includes four quarterly reviews, similar to this year. The amount of the 8th tranche following the 7th review in March remains unchanged at $917.5 million, while the amounts of the subsequent three tranches next year are set at $809.6 million, $539.8 million, and $445.3 million, respectively.