The IMF approved a new tranche for Ukraine, but set strict requirements regarding reforms and the hryvnia exchange rate

The IMF approved a new tranche for Ukraine, but set strict requirements regarding reforms and the hryvnia exchange rate

The National Bank has officially confirmed the agreement with the IMF on providing the next tranche of the EFF program, while noting Ukraine’s failure to implement key structural reforms. The law on taxation of parcels was never adopted by the Verkhovna Rada.

In fact, this means that Ukraine can expect to receive a tranche of $690 million, but the exact timing remains uncertain. It was previously planned to allocate funds in June, but now the dates are not specified. In addition, approval from the IMF Board of Directors is required for the transfer of funds.

The NBU statement also emphasizes that the Fund requires the continuation of reforms in the State Customs Service and ESBU, as well as strengthening the fight against tax optimization — this will probably lead to increased control by the tax service over businesses and citizens. The IMF’s positive attitude toward the transition to a more flexible exchange rate is noted separately, which is probably related to the recent devaluation of the hryvnia, which, apparently, will continue. This confirms the version of “Strany” that the NBU is deliberately weakening the national currency in agreement with the IMF.