IMF approves 2nd $1.7 bln tranche for Ukraine under EFF

The Executive Board of the International Monetary Fund (IMF) on July 31, 2015, completed the first review of Ukraine's Extended Arrangement under the Extended Fund Facility (EFF), and the completion of this review enables the disbursement of SDR 1.1821 billion (about $1.7 billion), the IMF said in a statement on Friday.

The new tranche will bring total disbursements under the arrangement to SDR 4.72 billion (about $6.68 billion).

Ukraine's four-year SDR 12.348 billion (about $17.5 billion) EFF was approved on March 11, 2015, to support the government's economic program, which aims to put the economy on the path to recovery, restore external sustainability, strengthen public finances, and support economic growth by advancing structural and governance reforms, while protecting the most vulnerable.

An IMF mission for the first EFF review worked in Kyiv May 12 through June 11. It originally planned to complete its work late in May or early in June so that a decision on the second tranche under the EFF could have been taken by the end of June. However, it was announced early in July that a staff-level agreement had been reached on a set of policies needed to complete the first review under the EFF, and the agreement was subject to approval by IMF management and the Executive Board, once the prior actions were completed and the conditions were in place for staff to assess that public debt was sustainable with high probability and the program was fully financed.

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