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Ukraine, IMF to continue discussion on achieving 2018 budget deficit of 2.5% of GDP
20.11.2017 12:54 "Agro Perspectiva" (Kyiv) —
The International Monetary Fund (IMF) and Ukrainian authorities will continue negotiations discussing the bill on the national budget of Ukraine for 2018 aiming to achieve its deficit of 2.5% of GDP, Interfax-Ukraine says referring to «Discussions will continue in the coming weeks to ensure that the approved budget is consistent with the 2.5% of GDP deficit target agreed under Ukraine’s IMF-supported program,» the IMF report made after the IMF staff team visited Kyiv within this year Nov 9–17, for technical discussions on the draft 2018 budget.
As to the report, the four-year EFF program launched by the IMF within Mar 2015 (with the total amount of SDR 12.348 milliard or around US$17.25 milliard), initially involved quarterly reviews of the program, with the first tranche of US$5 milliard, and the next three, SDR 1.18 milliard each (around US$1.65 milliard), to be paid within 2015, and declining quarterly tranches to SDR 0.44 milliard (US$0.61 milliard) within 2016–18.
Reportedly, Ukraine was able to receive, with a slight delay, the second tranche, US$1.7 milliard, under this program, within early Aug 2015, followed by a lengthy pause because of the country failure to meet a number of conditions, political crisis and changes in the government.
Since the arrival of a new government led by Volodymyr Groisman within Apr 2016 talks over continued funding have resumed but it was not until mid-September that the IMF decided to allocate the third tranche, US$1 milliard. The fourth tranche was received on Apr 3, 2017.
As to the report, the IMF has not yet determined the date for arrival of its mission to Ukraine for the fourth review of the EFF program that would open a way to receive the fifth tranche.
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