IMF concludes mission to Ukraine

KYIV – An International Monetary Fund (IMF) mission to Ukraine on the first review under the Extended Fund Facility was held 12-29 May 12-29. Nikolay Gueorguiev, mission chief for Ukraine, stated: “Understandings were reached on most issues, and discussions will continue in the comings days to finalize a staff-level agreement than can be taken for approval to the IMF management and the executive board. The authorities’ commitment to the reform program remains strong. All performance criteria for end-March were met and all structural benchmarks due in the spring are on course to be met, albeit some with a delay. This good program implementation has been achieved notwithstanding an exceptionally difficult environment, in part related to the unresolved conflict in the East, which took a heavier than expected toll on the economy in the first quarter of 2015. Accordingly, the mission has revised down growth projections for 2015 to -9 percent and projects end-year inflation at 46 percent.” The IMF mission chief also noted: “In recent months, signs that economic stability is gradually taking hold are steadily emerging. The foreign exchange market has remained broadly stable. Gross international reserves, although still very low, have increased to $9.6 billion at end-April. Banks’ deposits in domestic currency have been recovering. The budget outturn in the first months of 2015 was stronger than expected, partly due to temporary factors.” (Ukrainian Canadian Congress)