## News Brief: Statement by IMF Managing Director on Ukraine

_IMF News, September 13, 1996_

## Source details

**Canonical URL:** [News Brief: Statement by IMF Managing Director on Ukraine](https://www.imf.org/en/news/articles/2015/09/29/18/03/nb9607)

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## Bibliographic details
- Published: September 13, 1996

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### Introduction of the hryvnia and currency conversion
- Ukraine introduced a new currency, the hryvnia.
- All monetary holdings in the former currency, the karbovanets, will be converted into hryvnia at a single rate of conversion: Krb 100,000 for one hryvnia.
- During the period September 2-September 16, the karbovanets and the hryvnia were allowed to circulate in parallel.
- Beyond this period, the hryvnia will be Ukraine's sole legal tender.
- The Government expressed satisfaction about the pace of conversion of monetary holdings.

### Administrative measures and market controls
- Certain administrative restrictions introduced in the context of the currency conversion have been lifted.
- A price freeze that was introduced on September 2 has been canceled by the Government.
- Restrictions on the use of foreign currency accounts have been lifted.

### IMF Managing Director's assessment and economic context
- The IMF Management welcomes the introduction of the hryvnia and the continued commitment of the Ukrainian authorities to the program supported by a stand-by arrangement with the IMF.
- The sound financial policies pursued by Ukraine so far in 1996 have helped reduce inflation and stabilize the exchange rate.
- Structural reforms undertaken as part of the program, in particular privatization of state enterprises, have helped pave the way toward the recovery of the economy.
- The informal sector of the economy is already growing rapidly.

### Stand-by arrangement and financial support
- On May 10, 1996, the IMF approved a stand-by arrangement with Ukraine in an amount equivalent to SDR 598.2 million (about US$864 million).
- Under the present arrangement, Ukraine has made five purchases for a total of SDR 335 million (about US$484 million).

### Contacts
- IMF EXTERNAL RELATIONS DEPARTMENT — Public Affairs, Media Relations
- E-mail: publicaffairs@imf.org; media@imf.org
- Fax: 202-623-6278
- Phone: 202-623-7100

*IMF EXTERNAL RELATIONS DEPARTMENT, Public Affairs, Media Relations.*

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## References

- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [News Briefs](https://www.imf.org/en/news/searchnews)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/29/18/03/nb9607_