Ukraine expects to shortly receive $1.7 bln from IMF to top up foreign reserves - Poroshenko
KYIV. Jan 25 (Interfax) - Ukraine expects to receive another tranche of financing under the EFF program in the amount of $1.7 billion from the International Monetary Fund within a short period of time, Ukrainian President Petro Poroshenko has said.
Poroshenko and IMF Managing Director Christine Lagarde have agreed on the details of the extension of the next loan tranche to Ukraine, Poroshenko said in an interview with Ukrainian television channels during his visit to Davos.
"I am actually proud of the account that Lagarde gave in our respect. She said that Ukraine surprised the world. [...] We will shortly have $1.7 billion added to the Ukrainian gold and foreign exchange reserves. And this is not all," Poroshenko said.
He recalled his meeting with Swiss President Johann Schneider-Amman, during which they agreed on a $200-million loan for Ukraine; these funds are also to be added to the country's foreign reserves. "And it is about both the exchange rate and stability of the financial system and the national currency," Poroshenko said.
In his earlier comments on the talks with Lagarde in Davos and the expected amount of IMF aide for Ukraine in 2016, Poroshenko said: "Approximately, it will amount to $7 billion."
The four-year EFF program launched for Ukraine by the IMF in March 2015, envisaging the issuance of 12.348 million SDR (about $17 billion) initially included a quarterly review of the program and disbursements in favor of Kyiv of four tranches in 2015 and another four in 2016. However, by now the country has only received the first tranche in the amount of $5 billion and the second of 1.18 billion SDR (about $1.6 billion).
When deciding on the next, third, tranche for Ukraine, the IMF is going to assess its compliance with all preliminary conditions and structural benchmarks that would have to be met before the end of 2015. Once such criteria have been successfully met, the IMF board may hold its meeting on the third tranche within the EFF lending program in late January or February, according to Ukraine's Minister of Finance Natalie Jaresko.
