Economy 2022-10-15T04:43:13+03:00
Ukrainian news
USD 700 Million From IMF Will Be Used To Pay Pensions, Salaries Of Teachers And Doctors, Combat Coronavirus -

USD 700 Million From IMF Will Be Used To Pay Pensions, Salaries Of Teachers And Doctors, Combat Coronavirus - Marchenko

IMF, international monetary fund

The USD 700 million that the International Monetary Fund disbursed to Ukraine will be used to finance the state budget’s deficit, particularly to pay pensions and the salaries of teachers and doctors, as well as to fight the COVID-19 coronavirus pandemic.

Finance Minister Serhii Marchenko announced this on the Ukraine 24 television channel, the Ukrainian News Agency reports.

"These funds will be used to finance the budget deficit. These are the measures that the government should finance: the protected items of expenditure and the unprotected items of expenditure. That is, these funds will essentially be directed into Ukraine’s budget," Marchenko said.

According to him, these funds will be used to address the coronavirus pandemic and finance all social obligations, including payment of pensions and the salaries of educators and doctors. In addition, these funds can be used to pay debt and finance infrastructure projects, he said.

The minister stressed that the funds are not clearly linked to a specific project.

Marchenko expects the funds disbursed by the IMF to be transferred to Ukraine’s treasury account in the coming days.

According to him, Ukraine’s obligations to the IMF include continuing the implementation of judicial reform, facilitating the operations of anti-corruption agencies, ensuring the independence of the National Bank of Ukraine, and implementing reforms in the energy sector.

Besides, Ukraine must ensure that the 2022 state budget’s deficit does not exceed 3.5% of GDP.

As Ukrainian News Agency reported earlier, the IMF Board of Directors approved the completion of the first review of the Stand-By Arrangement for Ukraine and the disbursement of a loan tranche of USD 700 million to the country on November 22.

Besides, the IMF extended the loan program until the end of June 2022.

The Executive Board of the International Monetary Fund completed on November 22 the first review of Ukraine’s economic performance under the 18-month Stand-By Arrangement that was approved on June 9, 2020. The IMF-supported economic program aims to help the Ukrainian authorities address the effects of the COVID-19 shock, sustain the economic recovery, and move ahead on important structural reforms to reduce key vulnerabilities.

The previous program was due to end on December 8 this year.

Ukraine received about USD 2.7 billion from the IMF in August.

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