IMF Asks Ukraine for More Reforms to Release Next Tranche

The International Monetary Fund (IMF) representative Gosta Ljungman in Kyiv said on Saturday that Ukraine must make more progress on reforms to be able to receive the next tranche of the $5 billion loan.

"Ukraine's negotiations with the IMF are running since December, and are focused mainly on strengthening governance of the central bank, provisions on the legislative and regulatory framework for banks, policies to reduce the the fiscal deficit, legislations strengthening the anti-corruption framework, as well as amending energy policies, including gas prices" Ljungman said.

Meantime, Ukraine’s Prime Minister Denys Shmygal said the government would consider recommendations suggested by the IMF mission, saying: “We agreed on the upcoming steps … and clearly understand the expected results."

Ukrainian President Volodymyr Zelensky office said in a statement that they have informed the parliament to vote on judicial reform bills.

The IMF approved a $5 billion loan last June, and disbursed the first tranche of $2.1 billion, after the economy was hit hard by the pandemic.

Central Bank Governor Kyrylo Shevchenko said that Ukraine is expected to receive the $2.2 billion across three tranches in 2021.

Finally, loans to Ukraine have been frozen due to the slow pace of structural reforms.