Compromise with the IMF: Ukraine will receive a new loan despite the pause in taxation of international parcels

Compromise with the IMF: Ukraine will receive a new loan despite the pause in taxation of international parcels

The IMF has approved the disbursement of another loan tranche to Ukraine, despite Kyiv failing to meet one of the key conditions — the introduction of a tax on international parcels, Bloomberg reports.

As the agency explains, the fund took into account the difficult situation in the country, exhausted by war and facing growing discontent over the unpopular measure related to submitting the relevant draft law to parliament.

According to Bloomberg sources, the IMF and Ukrainian authorities have reached an agreement at the level of negotiators. This opens Kyiv’s access to a loan of approximately $700 million. The deal may be officially announced as early as today, but the final decision still needs to be approved by the IMF Executive Board next month.

The compromise resulted from several days of negotiations with the IMF mission that arrived in Ukraine at the end of May.

The main obstacle was that the Rada had still not managed to pass the draft law on taxing parcels.

In the end, the IMF agreed to postpone the deadline for adopting the law until July, effectively giving lawmakers additional time to fulfill the commitment, the agency’s source noted.

The next review of the cooperation program with the IMF is scheduled for no earlier than September.