NBU Expects To Receive USD 2 Billion From IMF In 2018

The National Bank expects to receive USD 2 billion from the International Monetary Fund (IMF) in 2018.

The NBU announced this in a statement, Ukrainian News Agency reports.

"In 2018, the National Bank expects about USD 2 billion from the IMF, as well as receiving of loans by government from the EU and the World Bank, which will increase international reserves to USD 21.6 billion by the end of this year," the statement reads.

At the same time, the NBU stresses that in 2019 and 2020, through the peak payments on the external public debt, the balance of payments will be draw with a deficit and international reserves will be slightly reduced.

The National Bank considers the main risk for the implementation of the said macroeconomic forecast to be the lack of progress in implementing the structural reforms necessary to retain macrofinance stability and cooperation with the IMF.

The postponement of the necessary steps to resume cooperation with official creditors narrows the window of opportunity in attracting the necessary funding to carry out peak payments on public debt in 2018-2020.

Therefore, according to the National Bank, urgent efforts to continue cooperation with the IMF are critically important for the preservation of macroeconomic stability in Ukraine.

Also, a weighty risk is the government's implementation of a softer fiscal policy, in particular, a further increase in social spending at a faster pace than overall growth in labor productivity in the economy, which may increase inflationary pressures.

As Ukrainian News Agency earlier reported, in December, the National Bank announced that it expects to receive 2 tranches of USD 3-3.5 billion in 2018 from the International Monetary Fund.