OREANDA-NEWS. July 05, 2010. On Saturday, July 3, the International Monetary Fund announced in a press release that the fund’s mission to Ukraine reached an agreement with the local authorities on a new 2.5-year USD 14.9 bln (50% of current central bank’s reserves) stand-by agreement. The facility still needs to be approved by the IMF’s board of directors.

Concorde Capital: the new agreement will facilitate fiscal consolidation, capping the budget deficit at 6.5% of GDP in 2010, 3.5% in 2011; and will help the Ukrainian government place USD 1-2 bln sovereign Eurobonds in July. Access to additional FX liquidity will also keep UAH FX risks low; and will give Ukraine more comfort in timely and full repayment of its external obligations.