Economy 2024-06-15T11:28:47+03:00
Ukrainian news
Ukraine To Pay USD 1.6 Billion Of Foreign Debt Liabilities And Return USD 1 Billion To IMF In 2017

Ukraine To Pay USD 1.6 Billion Of Foreign Debt Liabilities And Return USD 1 Billion To IMF In 2017

IMF, Ukraine, NBU, Hontareva, foreign debt liabilities

Ukraine is due to return USD 1 billion to the International Monetary Fund and pay USD 1.6 billion of foreign debt liabilities in 2017.

National Bank of Ukraine Governor Valeria Hontareva announced this at a meeting with top managers of Ukrainian banks on Monday, Ukrainian News Agency reports.

Valeria Hontareva told the top managers of Ukrainian banks about risks for the macroeconomic stability.

"It is vitally important to continue the cooperation with the International Monetary Fund and get financing under the program. Without support from the IMF and other international donors the forex reserves will begin to lessen next year, as we will have to make payments on foreign debt liabilities in 2017 for a total sum of close to USD 1.6 billion and to return to the IMF over USD 1 billion under the stand-by program," she said.

According to Hontareva, it will be impossible to guarantee financial stability if the forex reserves lessen.

Commenting on the macroeconomic situation, the governor of the Ukrainian central bank noted that 2016 has been showing the efficiency of the monetary policy of the National Bank of Ukraine.

"After the crisis years of 2014 and 2015 we managed to cut the inflation by the instruments of the monetary policy. By the end of 2016 the inflation will be at the targeted level of 12%," she said.

Valeria Hontareva says there is no alternative at present to the inflation targeting, as the current monetary regime yields required results in the existing environment.

As Ukrainian News Agency earlier reported, the IMF mission was working in Ukraine from November 3 to 17.

Upon conclusion of the mission work, the International Monetary Fund urged the Ukrainian authorities to adopt a national budget for 2017 conforming with the cooperation programme.

The mission also said that the Ukrainian authorities needed more time to fulfill the current stage of the cooperation programme.

In September, the International Monetary Fund approved disbursement of a USD 1 billion tranche to Ukraine.

In its updated Memorandum of Cooperation with the IMF, Ukraine pledged to implement land reform and adopt a law that provides for gradually raising the retirement age for citizens.

In early October, the parliament extended the moratorium on sale of agricultural land by one year until January 1, 2018.

The National Bank of Ukraine previously expected the International Monetary Fund to disburse a USD 1.3 billion tranche to Ukraine before the yearend.

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