IMF Delegation Visit: Ukraine seeks more IMF cash

16:50 Nov. 3, 2016

Ukraine seeks more IMF cash

A sign hangs on the International Monetary Fund Headquarters 2 building just blocks from the White House May 16, 2011. (Getty Images)

IMF mission returns to Kyiv to assess the state of Ukraine's economy and the possibility to unlock further tranche

A new mission of the International Monetary Fund (IMF), the key Ukraine's creditor, has arrived in Kyiv on November 3.

Ukrainian central bank (NBU) statement said the IMF mission was meeting with its top official and would likely work in Kyiv for two weeks.

"The IMF mission led by Ron van Rooden has started its work in Ukraine today. At present, the mission is meeting with NBU Governor Valeriya Gontareva and her deputies," the bank reported on its social media page.

Ukraine hopes to obtain a new loan tranche worth about USD 1.3 billion in December after this mission's work, but finance and economy experts say meeting the IMF's demands would be tough.

Ukrainian media reports said the IMF has outlined five points that Kyiv must meet in order to get further payments.

The first involves obtaining the required capital needed for 12 large and systemically important banks to stay afloat.

The Fund also wants the government to start gradually raising the cost paid by households for gas and heating to "market levels" starting in March 2017.

The IMF also wants the government to find a way to turn its loss-making state gas and oil company into a profitable venture by the end of 2017.

It further would like to see Kyiv speed up its privatisation efforts and simplify its outdated tax system.

In September the IMF released its third tranche payment that Ukraine had been hoping to see in 2015.

Based on reporting by AFP

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