The implementation of the IMF's Extended Fund Facility (EFF) program will provide long-term support to Ukraine in the next four years, which will allow returning to economic growth, restoring sufficient level of foreign exchange reserves, and ensuring economic and financial stability in the future. This was announced by the Minister of Finance Natalie Jaresko on her page on Facebook, Censor.NET reports.
According to the minister, the government of Ukraine has requested expanded funding to establish long-term partnership with the International Monetary Fund immediately after the meeting with participation of Ukrainian President Poroshenko, IMF Managing Director Christine Lagarde, Ukrainian Finance Minister Natalie Jaresko, and the National Bank of Ukraine Chairman Valeria Hontareva.
The minister noted that consultations with the Ukrainian sovereign debt owners to improve the medium-term financial stability are part of the Ministry of Finance general plan.
"Today's decision once again demonstrates the international financial partners and creditors unwavering devotion to the Ukrainian government's ambitious program of reform and macro-economic stability," Jaresko wrote.
It is also reported that along with discussions of the EFF mechanism with the IMF, the leaders of Ukraine will continue working with international financial institutions and partners throughout the world on obtaining additional financial resources to support the reform program of the country.
Recall the key creditor of Ukraine, the International Monetary Fund received a request from the government of Ukraine on conclusion of a new long-term program of cooperation to replace the existing stand-by program and is ready to consider it at a meeting of the Board of Directors of the Fund. According to Christine Lagarde, the IMF mission, currently working in Kyiv, will start discussing the new program with the Ukrainian authorities.
Earlier, President of Ukraine Poroshenko said that Ukraine and the International Monetary Fund have prepared a memorandum on the new program of cooperation that takes into account the current situation in the country and includes a new package of reforms and the new, increased funding package. The basic details of the new program, according to Poroshenko, may be announced by the end of January.
Ukraine and the IMF signed a two-year cooperation program in April 2014 with total funding of $17 billion. Ukraine has received two tranches of the loan from the IMF, totaling $4.6 billion in 2014. That was half of the total financial aid package received by our country during the year 2014. Another mission of the International Monetary Fund arrived in Ukraine Jan. 8.
The decision of the IMF is essential not only to obtain financing from the Fund, but also to gain access to additional financial aid packages from other creditors - the World Bank, the EBRD, as well as the assistance of the U.S. government, the EU, and Japan. European Commission President Jean-Claude Juncker said in January 2015 that the EU is ready to provide Ukraine with 1.8 billion Euro; the U.S. government has declared its readiness to provide state guarantees for $2 billion. About 500 million Euro more were allocated to Ukraine by the government of Germany. The Government of Japan has provided $300 million aid package.
Ukraine received $9 billion of financial assistance from various sources in 2014 while paying $14 billion of external obligations. The amount of external obligations, required to be paid in 2015, is about $11 billion.