11:45 Jun. 16, 2016
Kyiv needs to adopt more reform legislation to receive delayed funds
The International Monetary Fund may release the next batch of its financial aid to Ukraine in two parts.
That is according to Ivan Miklos, senior economic adviser to new Prime Minister Volodymyr Groysman.
In an interview to Reuters Miklos said that Ukraine would likely need to pass more reform legislation in order to meet requirements for the IMF to fully release USD 1.7 billion in delayed funds.
"The goal is, if not to receive the tranche in one amount, to deliver it in two parts - the first one in July and the second one in autumn," Miklos stated.
Government's top economic adviser expects Ukraine's fiscal and balance of payments pressures should ease if the country receives at least USD 1 billion worth of International Monetary Fund support this year as it gets its reform efforts back on track.
The four-year Extended Fund Facility program worth about USD 17.5 billion originally foresaw quarterly reviews of the program, the disbursement of four tranches to Kyiv in 2015, and another four in 2016. However, at present, the country received only the first tranche worth USD 5 billion on March 13, 2015, and the second one worth USD 1.7 billion arrived on August 4, 2015.