Ukraine itself asked the IMF to reduce the size of the tranche: the NBU explained why
Kyiv • UNN
The NBU explained the reasons for reducing the IMF tranche from 0.92 to 0.4 billion dollars. According to Andriy Pyshny, this decision was made at the request of the Ukrainian side due to the availability of other confirmed sources of funding.
The reduction of the IMF tranche amount occurred after appropriate discussions and at the request of the Ukrainian side, considering that Ukraine currently has properly confirmed sources of external financing. This was reported by the head of the NBU, Andriy Pyshny, during a briefing, as reported by UNN.
Pyshny explained why the last IMF tranche that Ukraine is expecting will be half as much and will amount to $0.4 billion.
This happened after appropriate discussions and largely at the request of the Ukrainian side, considering that we currently have properly confirmed sources of external financing.
He added that the National Bank has always emphasized the importance of maintaining two components for receiving international financial assistance: sufficiency and regularity.
Given the sources we currently have as confirmed, and considering the regularity with which we receive the state of the balance of payments, after appropriate discussions, we jointly determined that this distribution of the respective amounts we expect to receive from the IMF will be optimal
Deputy Head of the NBU Serhiy Nikolaychuk added that taking into account the current needs of the balance of payments and considering the assurances that are currently in Ukraine from international partners, at the request of the Ukrainian side, the IMF mission agreed to change the payment structure under the program and to defer financing to future periods.
Context
The IMF reduced the tranche for Ukraine from $0.92 billion to $0.4 billion, which is a technical decision.
On February 28, it was reported that representatives of the Ukrainian authorities and the IMF reached an agreement at the expert level regarding the seventh review of the Extended Fund Facility (EFF) program. The total volume of the program is about $15.5 billion.
On February 20, the IMF mission began work in Kyiv, and the fund representatives will discuss the seventh review of the Extended Fund Facility (EFF) program with the Ukrainian authorities.