## Press Release: Statement by IMF Managing Director Christine Lagarde on Ukraine

_IMF News, March 11, 2015_

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**Canonical URL:** [Press Release: Statement by IMF Managing Director Christine Lagarde on Ukraine](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr15105)

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## Bibliographic details
- Published: March 11, 2015

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### Key announcement and program terms
- IMF Executive Board approved an Extended Arrangement under the Extended Fund Facility (EFF) of SDR 12.348 billion (about $17.5 billion, €15.5 billion) for Ukraine.
- The arrangement is four-year in duration.
- The program replaces a Stand-By Arrangement with an Extended Arrangement under the EFF to reflect Ukraine’s more protracted balance-of-payments needs.
- Expected benefits of the Extended Arrangement as stated:
  - more funding
  - more time
  - more flexibility
  - better financing terms

### Objectives and focus of the program
- Support immediate economic stabilization in Ukraine.
- Support a set of deep and wide-ranging policy reforms aimed at restoring robust growth over the medium term and improving living standards for the Ukrainian people.
- The program builds on actions taken under the earlier Stand-By Arrangement and is supported by additional resources from the international community.

### Front-loaded measures and reforms
- Many key measures are front-loaded under the new program, including:
  - further sizable energy tariff increases
  - bank restructuring
  - governance reforms of state-owned enterprises
  - legal changes aimed at combating corruption and strengthening the rule of law
- The Ukrainian government has taken actions toward consultations with the holders of their public sector debt with a view to improving medium-term sustainability.

### Fiscal, monetary, and social policy actions noted
- The Ukrainian authorities have:
  - maintained fiscal discipline in very difficult conditions
  - allowed the exchange rate to adjust
  - increased retail end-user prices for gas
- To cushion the impact of adjustment, especially for the poorest groups, measures are being taken to strengthen and better target the social safety net.

### Risks and outlook
- The program is ambitious and involves risks, notably those stemming from the conflict in the east of the country.
- The cease-fire agreed last month in Minsk seems to be largely holding for now, offering hope that a further loss of life can be avoided.
- With continued firm implementation, the Managing Director stated there is a "reasonably strong prospect of success."

### Contact and publication details
- Press Release No. 15/105
- Date: March 11, 2015
- IMF Communications Department, Media Relations — E-mail: media@imf.org, Phone: 202-623-7100

*Source: Press Release: Statement by IMF Managing Director Christine Lagarde on Ukraine (Press Release No. 15/105), March 11, 2015.*

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## References

- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [Germany and the IMF](http://www.imf.org/external/country/DEU/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr15105_