The National Bank of Ukraine (NBU) welcomes the completion of the revision of the policy of additional charges (charges, surcharges and commitment fees) by the Board of Executive Directors of the International Monetary Fund (IMF).
This is stated in the message of the NBU, Ukrainian News Agency reports.
This decision was adopted by the Board of Executive Directors of the IMF on October 11, 2024.
The changes will come into force on November 1, 2024 and will be in effect for the next five years.
The approved measures will reduce the cost of IMF borrowing to member states by an average of 36%, or about USD 1.2 billion a year.
At the same time, for Ukraine, the cost of borrowing will decrease more significantly - by about 38-39%, because Ukraine is one of the largest borrowers of the IMF.
The number of countries subject to additional fees is expected to drop from 20 to 13 in fiscal year 2026.
This will be done by reducing the premium to the base interest rate, raising the threshold for surcharges for the volume and term, lowering the surcharge rate for the term of the loan and increasing the threshold levels for the commitment fee.
As Ukrainian News Agency earlier reported, on March 31, 2023, the Board of Executive Directors of the International Monetary Fund approved a four-year program of expanded financing for Ukraine.
The program is implemented in two stages (war and post-war) and provides access to credit funds from the IMF in the amount of SDR 11.6 billion (equivalent to USD 15.6 billion).
Tranches under the program are provided based on the results of viewings. In 2023, Ukraine received three tranches from the IMF for a total amount of SDR 3.3 billion (USD 4.5 billion). This year, Ukraine has already received two tranches from the IMF in the amount of 2.3 billion SDRs (about USD 3.1 billion equivalent).
And in general, in 2024, the government will be able to receive four tranches from the IMF with a total volume of SDR 4 billion (USD 5.4 billion equivalent).
The IMF mission regarding the fifth review of the Extended Fund Facility (EFF) program with Ukraine, which worked in Kyiv from September 4 to 10, 2024, has completed its work. According to its results, a staff-level agreement (SLA) was reached.
The relevant arrangement must be approved by the IMF Board of Directors, which will consider it this week. This decision will give Ukraine access to financing in the amount of SDR 834.8 million (about USD 1.1 billion equivalent).
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