IMF and Ukrainian Authorities Reach Staff Level Agreement on a New Stand-By Arrangement

IMF News, October 19, 2018

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Canonical URL: IMF and Ukrainian Authorities Reach Staff Level Agreement on a New Stand-By Arrangement

Press Release No. 18/392
Date: October 19, 2018
The International Monetary Fund (IMF) staff and the Ukrainian authorities have reached agreement on economic policies for a new 14-month Stand-By Arrangement (SBA).
The new SBA will replace the arrangement under the Extended Fund Facility (EFF), approved in March 2015, which is set to expire in March 2019.

Requested access: SDR 2.8 billion (equivalent to US$3.9 billion).
The program will provide an anchor for the authorities’ economic policies during 2019.
Key program objectives and focuses:
- Continuing with fiscal consolidation.
- Reducing inflation.
- Reforms to strengthen tax administration.
- Reforms to strengthen the financial sector.
- Reforms to strengthen the energy sector.

The new program has been developed in close coordination with the World Bank and the European Union, who have parallel operations to support Ukraine.
Program implementation: The authorities’ steadfast and effective implementation will be critical for the program to achieve its objectives.
Approvals required:
- The agreement is subject to IMF management approval and approval by the IMF Executive Board.
- Board consideration is expected later in the year following:
- Parliamentary approval of a government budget for 2019 consistent with IMF staff recommendations.
- An increase in household gas and heating tariffs to reflect market developments while continuing to protect low-income households.

IMF Press contact listed: PRESS OFFICER: Olga Stankova; Phone: +1 202 623-7100; Email: MEDIA@IMF.org

Press Release No. 18/392, October 19, 2018.