IMF staff reaches deal with Ukraine for $690 million disbursement, pending board approval
IMF Loan Review and Economic Assessment for Ukraine
By Andrea Shalal
Completion of First Review and Loan Disbursement
WASHINGTON, June 12 (Reuters) - The International Monetary Fund on Friday said it had completed its first review of Ukraine's $8.1 billion loan program, paving the way for the war-torn country to receive a second tranche of $690 million despite Kyiv's failure to meet a key condition.
Pending Board Approval
The IMF's board must still approve the agreement.
Ukraine's Performance and Structural Benchmarks
Ukraine met all quantitative performance criteria and indicative targets for the loan by the end of March, but implemented two structural benchmarks with a delay and missed one benchmark, the IMF said in a statement.
Revised Timeline and Policy Commitments
To keep the program on track, IMF staff and Ukrainian authorities agreed to a revised timeline for implementing reforms, corrective actions to address slippages and additional policy commitments, the IMF said in a statement.
Lack of Details on Commitments
It gave no details on the new timeline or commitments.
Macroeconomic Stability and Economic Outlook
The IMF, which also completed a review of Ukraine's overall economy, said authorities had broadly maintained macroeconomic stability despite Russia’s war - now in its fifth year - as well as spillovers from the war in the Middle East.
National Bank of Ukraine's Role
It said the National Bank of Ukraine (NBU) has maintained adequate international reserves, preserved financial stability and kept inflation expectations anchored despite shocks. However, GDP growth is projected to slow to 1% to 1.6% this year due to the impacts of the ongoing war and spillovers from the war in the Middle East which began on February 28.
(Reporting by Andrea Shalal; Editing by Mark Porter and Andrea Ricci )