WASHINGTON, Oct 18 Reuters : The IMF has reached an agreement on economic reforms that will pave the way for a first review of the country's 18-month stand-by arrangement and the request for an extension until the end of June, say officials in a statement.
It added that the completion of the first review and execution of $5 billion arrangement, which was originally due to expire in December this year, would enable disbursements of about $700 million to the country.
The agreement and the request for program extension are subject to approval by the IMF management and executive board, expected to address the matter in November.
Ukraine signed the IMF program for $5 billion last year, but the loans were effectively frozen over concerns about reforms.
We conducted remote discussions with the Ukrainian authorities from Sept. 21 to Oct. 18. IMF staff conducted meetings with the international monetary committee from Sept. 21 to Oct. 18.
Ivanna Vladkova Hollar, leader of the virtual mission, said the two sides reached agreement on an updated set of economic, financial, and structural policies to help address the health crisis caused by COVID -19 while maintaining macroeconomic stability, reducing vulnerabilities and tackling key obstacles for private investment.
She said the program was focused on returning fiscal policies to settings compatible with medium-term debt sustainability, while protecting vulnerable populations, strengthening revenue administration, and controlling risks from quasi-fiscal operations, including in the energy sector, while safeguarding central bank independence and reducing inflation.
Other goals included improving sound banking lending to the private sector, tackling corruption and moving forward with judicial reforms and reviving the business climate, IMF said.