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Economy 2019-05-15T04:19:24+03:00
Ukrainian news
IMF Publishes Memo On Economic And Financial Policies Within New Program For 2018-2020

IMF Publishes Memo On Economic And Financial Policies Within New Program For 2018-2020

The International Monetary Fund has published the Memorandum on economic and financial policy within the new program for 2018-2020.

The Finance Ministry of Ukraine announced this in a statement, Ukrainian News Agency reports.

The Memorandum on economic and financial policy was endorsed by the Board of Directors of the International Monetary Fund on December 18, 2018.

Execution of provisions of the Memorandum on economic and financial policy will mean attraction of USD 3.9 billion from the IMF. The money will go to the reserves of the National Bank of Ukraine.

The statement reads that the attraction of UAH 3.9 billion will support the national currency of Ukraine and will provide for predictable investment environment.

On December 18, the Board of Directors of the International Monetary Fund endorsed the decision to launch the new program and to allocate USD 1.3 billion of the first tranche to Ukraine.

The attraction of the funds of the IMF will open opportunities for receiving more international financial support, including USD 750 million from the World Bank.

Key provisions of the Memorandum on economic and financial policy within the new program include continuation of the Ukrainian central bank’s policy on flexible exchange rate, inflation of 7% in 2019 and 5% in 2020, the state budget deficit of 2.25% of GDP in 2019, absence of tax amnesty during the program, absence of new tax benefits during the new program, the introduction of the second level of the pension system is suspended.

Ukraine will continue the dialogue with experts of the International Monetary Fund on possible introduction of the tax on withdrawn capital.

As Ukrainian News Agency earlier reported, at its meeting on Tuesday, December 18, the International Monetary Fund approved the new cooperation program with Ukraine (SBA (stand-by) program).

According to the IMF, the new program will ensure support to economic policy of Ukraine in 2019 and focus on retention of macroeconomic and financial stability.

A standalone priority within the new program is further progress in anticorruption reforms.

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