NBU Expects USD 3.5 Billion From IMF In 2018, USD 0.5 Billion From World Bank, And USD 1.5 Billion From Eurobonds
The National Bank of Ukraine expects USD 3.5 billion from the International Monetary Fund in 2018, USD 0.5 billion from the World Bank, and USD 1.5 billion from placement of Eurobonds.
This is said in the October inflation report of the NBU, Ukrainian News Agency reports.
Large repayments of public debt in 2019 require additional attraction of money to accumulate required volumes of international reserves.
The central bank expects tranches of the IMF in 2018 for a total of USD 3.5 billion and a loan of USD 0.5 billion from the World Bank.
After successful placement of external government bonds for USD 3.5 billion in 2017 the central bank expects continuation of placement external government bonds for USD 1.5 billion in 2018 and USD 1.5 billion in 2019.
Along with a surplus of the overall balance of payments, the tranches of the IMF within the Extended Fund Facility program will boost the international reserves to USD 22.2 billion, or 4.2 months of future imports as of the end of 2018.
"At the same time, large repayments of public debt in 2019 will decrease international reserves to USD 21.2 billion, or 3.9 months of future imports as of the end of 2019," reads the report.
As Ukrainian News Agency earlier reported, the National Bank of Ukraine does not expect the IMF to allocate another tranche in 2017. The NBU worsened its outlook for the international reserves to USD 18.6 billion as at the yearend.
Finance Minister of Ukraine Oleksandr Danyliuk does not rule out provision of another tranche by the International Monetary Fund (IMF) before the end of 2017.
On September 12-13, First Deputy Managing Director of the International Monetary Fund David Lipton had negotiations with President Petro Poroshenko, Prime Minister of Ukraine Volodymyr Groysman, Ministry of Finance leadership and other top officials in Kyiv.
After his visit he urged Ukraine to implement requirements of the cooperation program to obtain another tranche from the International Monetary Fund.
It is expected that the IMF mission will arrive in November to discuss the draft national budget for 2018.
The International Monetary Fund has set forward conditions of providing Ukraine with the next tranche.
The conditions for the fourth revision of the program include adoption of the law on privatization providing transparent sale of state assets, creation of the anticorruption court, and regulation of the question of natural gas prices.