Ukraine: Request for Extended Arrangement Under the Extended Fund Facility and Cancellation of Stand-By Arrangement
IMF Staff Country Reports, March 12, 2015
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- Ukraine: Request for Extended Arrangement Under the Extended Fund Facility and Cancellation of Stand-By Arrangement
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Bibliographic details
- Authors: Arrangement This
- Published: March 12, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498353779.002
Overview
- The paper discusses Ukraine’s Request for Extended Arrangement Under the Extended Fund Facility (EFF) and Cancellation of Stand-by Arrangement (SBA).
- Despite tangible progress under the SBA, the crisis in Ukraine increased its balance of payments and adjustment needs beyond what can be achieved under the current program.
- The authorities proposed a new four-year IMF-supported program to decisively address these challenges, restore financial and economic stability, and resolve long-standing structural obstacles to growth.
- IMF staff supports approval of Ukraine’s four-year Extended Arrangement under the EFF with access equivalent to SDR 12.348 billion.
Key findings and rationale
- Progress under the SBA was tangible but insufficient given the widening balance of payments and adjustment needs caused by the crisis.
- A longer-duration program (four-year) is necessary to:
- Restore financial stability.
- Restore economic stability.
- Resolve long-standing structural obstacles to growth.
Program features and access
- Duration: four-year IMF-supported program.
- IMF staff recommendation: approval of an Extended Arrangement under the EFF.
- Access level recommended: SDR 12.348 billion.
Policy priorities and objectives outlined
- Restore financial and economic stability.
- Address large external financing needs.
- Resolve long-standing structural obstacles to growth.
Subject coverage and keywords (as provided)
- Subjects: Banking, Exchange rates, External debt, Foreign exchange, Inflation, Prices, Public debt, Revenue administration
- Keywords: auction rate, CR, Europe, exchange rate, Exchange rates, fund, FX, FX demand, FX transfer, Global, Inflation, ISCR, NBU, program policy, Ukraine, Ukraine's authorities