IMF Mission Agreed on Review under Stand-By Arrangement with Ukraine
OREANDA-NEWS. On 20 April 2009 was announced, that a mission of the International Monetary Fund (IMF) led by Ms. Ceyla Pazarbasioglu visited Kyiv during April 8-17 for discussions on the first review under the Stand-By Arrangement (SBA) with
“The IMF mission today reached staff-level agreement with the Ukrainian authorities on the conclusion of the first review under the SBA. The authorities’ Letter of Intent and Memorandum of Economic and Financial Policies will now be submitted to IMF Management for approval. The documents and a staff report will then be considered by the IMF Executive Board by mid-May. We agreed with the authorities to propose to IMF Management and the Board to disburse the second and third tranches under the SBA in equal installments of SDR1.9 billion (about US\\$2.8 billion). Payment of the second tranche is conditional on Board completion of this first review, while payment of the third tranche is contingent on the completion of the second review of the authorities’ economic program.
“
“Against this backdrop, and following extensive and constructive discussions with the authorities, we have reached understandings on outstanding policy issues, including the implementation of fiscal corrective measures and bank recapitalization and strengthening. Progress has already been made on both these fronts and we welcome the authorities’ commitment to implement policies in a determined and timely manner.
“In light of the sharper than expected decline in economic activity, the authorities commit to containing the budget deficit to 4 percent of GDP in
“The authorities are implementing a comprehensive framework for the recapitalization and restructuring of the banking sector. The diagnostic study covering most of the banking system was completed as planned (and is now extended to smaller banks), and recapitalization of capital deficient banks will begin soon. The authorities will also shortly strengthen their framework to guide bank resolution. A key element in this framework is depositor protection. The mission firmly believes that the authorities’ comprehensive approach to bank restructuring is appropriate and that it should bolster confidence in the banking sector.
“The flexible exchange rate regime has served
“Going forward, the global financial and economic crisis poses a challenging environment for
Комментарии