IMF May Not Approve Ukraine’s Tranche in July, Minister Says

  • Several laws still need to be adopted by parliament: Danylyuk
  • IMF board to consider Ukraine’s further aid payment next month

The International Monetary Fund may delay a board decision on Ukraine’s next aid tranche, previously expected in July, and consider disbursement next month, according to Finance Minister Oleksandr Danylyuk, as several laws still need to be approved by parliament.

“I think there will be an IMF board meeting in August and there will be a positive decision” for Ukraine on the next portion of its $17.5 billion rescue package, Danylyuk said Thursday in a live TV broadcast from Kiev. “We have done a lot, and the board understands this.”

Each of the outstanding laws is “not essential” for Ukraine’s program with IMF, he said. “The thing is, there are several of them, and this is not a very good signal.”

The government of Volodymyr Hroisman sees Ukraine receiving more than $4 billion from the IMF this year as foreign financing is critical to sustain the country’s economy. Disbursement from the IMF and other lenders was delayed amid requirements to help remove graft, compounded by a cabinet reshuffle early this year.

The IMF was getting close to finishing the Ukraine program review, Managing Director Christine Lagarde said on July 14, adding that she has “huge confidence” in the country. President Petro Poroshenko discussed the next tranche for Ukraine with Lagarde by phone on July 9.

The national parliament is on summer recess until September. Speaker Andriy Parubiy said Monday that lawmakers approved “key” laws for IMF.

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