IMF Expects Kiev's Moves On Budget, Tariffs Before Allocating Funds - Ukraine Central Bank

KIEV (UrduPoint News / Sputnik - 26th September, 2018) The International Monetary Fund (IMF) is waiting for Kiev's decision on gas tariffs and certain issues related to the state budget before allocating funds to Ukraine, Governor of the National Bank of Ukraine (NBU) Yakiv Smolii said on Tuesday.

An IMF team wrapped up a two-week visit to Ukraine on Thursday without announcing a new aid deal.

"The negotiations are continuing, there are no questions for the National Bank, we are waiting for the necessary steps - bringing the gas tariffs to market level, as well as finalizing certain issues of the state budget. We are optimistic," Smolii said, as quoted by the NBU press service.

Summarizing the visit of the IMF mission to Kiev, the NBU chief called the dialogue with the fund constructive.

Kiev has been receiving loans as part of the IMF's $17.5-billion Extended Fund Facility (EFF) assistance package. The loans, which are part of a four-year program aimed at reviving the Ukrainian economy, were approved by the IMF back in 2015. So far, Kiev has received four installments of aid totaling $8.7 billion.

The IMF froze the aid payments in April, and a fifth payment was never disbursed because Ukraine had not met all of the fund's requirements. The IMF has said that Ukraine needs to first make progress on the issues of establishing an independent anti-corruption court, gas pricing, and tax policy before it can release the loans.

According to media reports, Ukraine's latest talks with the IMF are aimed at replacing the $17.5-billion EFF package with a new standby agreement.