Ukrainian Deputy Minister of Finance Oleksandr Kava told journalists, including EUROPE, on Tuesday 27 April that his country is currently in talks with the IMF and the EU for additional financial support.
In mid-February, the IMF announced that it was waiting for more reforms before granting a new tranche of aid. In June 2020, the Fund approved a 4.4 billion euros programme, with an immediate release of 1.7 billion euros and four further tranches for 2020 and 2021, but none of these have been disbursed as of yet.
“We are in the process of negotiating further cooperation on financing”, said Mr Kava, describing the dialogue as productive.
According to him, the Fund’s main demands have been met, such as the opening of the natural gas market and an anti-corruption infrastructure, while acknowledging that there were still open issues: work reform and fiscal system. The Minister estimated that it might be possible to have a tranche of aid in May.
But, according to Mr Kava, Ukraine is not in a situation where it is necessary to get support as quickly as possible. “We want to have the best conditions as possible”, he added. Despite Covid-19, a more effective fight against corruption “has allowed us not only to keep State budget at the same level but even to make the indicators better”.
Asked about further EU support, the Minister explained that negotiations were underway. “The more financing we attract at more preferred conditions, it will be easier for us both to serve the existing debt and to restructure, and to finance commitments from the State to the public”, he explained.
In December, the EU disbursed 600 million euros as part of a 1.2 billion euros macrofinancial assistance package (see EUROPE 12619/11).
On 27 April, the Deputy Director General of the European Commission’s DG NEAR, Katariná Mathernová, discussed with Ukrainian MP Andriy Kostin the conditions for macrofinancial assistance, “in particular, the reform of the judiciary and law enforcement”, calling for further reforms. (Original version in French by Camille-Cerise Gessant)