## IMF Executive Board Concludes 2016 Article IV Consultation and Completes Third Review of Ukraine’s EFF, Approving US$1.00 Billion Disbursement

_IMF News, April 3, 2017_

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## Bibliographic details
- Published: April 3, 2017

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### Key decisions and disbursement
- The Executive Board completed the third review of Ukraine’s economic program under the Extended Fund Facility (EFF).
- Completion of the review enables the disbursement of SDR 734.05 million (about US$1.00 billion).
- Total disbursements under the arrangement will reach SDR 6,178.26 million (about US$8.38 billion).
- Ukraine’s four-year SDR 12.348 billion (about US$17.5 billion at the time of approval of the arrangement) EFF was approved on March 11, 2015.

### Macroeconomic assessment and recent developments
- The Ukrainian economy is showing welcome signs of recovery: growth is returning, inflation has been brought down, and international reserves have doubled.
- Progress is attributed to decisive policy actions, including sound macroeconomic policies.
- The recent stabilization provides a promising basis for further growth.

### Structural reforms and priorities
- Structural reforms need to be accelerated to achieve faster, sustainable growth and to lift incomes.
- Specific reform priorities highlighted:
  - Privatization should be initiated.
  - Developing a market for agricultural land needs to start.
  - Corruption must be tackled decisively; despite creation of new anticorruption institutions, concrete results have yet to be achieved.
  - Comprehensive pension reform cannot be delayed much longer, including raising the effective retirement age.
  - Sustained efforts are needed to improve revenue administration and advance public administration reform.

### Fiscal outlook and vulnerabilities
- Despite a large fiscal adjustment, public debt remains high.
- The urgency of structural fiscal reforms to ensure medium-term sustainability has increased as pressures to raise wages and pensions are building.

### Monetary policy and financial sector
- The National Bank of Ukraine (NBU) has skillfully managed monetary policy during a very challenging period.
- Important to safeguard the NBU’s independence and keep monetary policy focused on containing inflation and rebuilding international reserves within a flexible exchange rate regime.
- Maintaining monetary focus will make room for the gradual removal of remaining administrative measures.
- Impressive progress has been made in rehabilitating the banking system, but continued efforts are required to restore banks’ soundness and reinforce their ability to support growth.
- The recent nationalization of Ukraine’s largest bank was an important step to safeguard financial stability; it must now be followed by firm efforts to ensure repayment of loans to minimize the cost to taxpayers.
- Recapitalization of other banks and the unwinding of related-party exposures need to be completed.

### External support and arrears
- Ukraine’s international partners have provided substantial financial and technical support; their continued assistance remains important for the success of the program.
- Good-faith efforts to resolve the remaining sovereign arrears must continue.

*Press Release No. 17/111 — April 3, 2017 — IMF Communications Department*

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## Content in this bundle

- [Pr17111u (PDF)](/external/lang/ukrainian/np/sec/pr/2017/pr17111u.pdf){rel="external" type="application/pdf"}

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## References

- [David Lipton](http://www.imf.org/external/np/omd/bios/dl.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 15/107](http://www.imf.org/external/np/sec/pr/2015/pr15107.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/04/03/pr17111-imf-executive-board-concludes-2016-article-iv-consultation-and-completes-third-review_