IMF on 28 July will consider the allocation of Ukraine 3rd tranche of credit stand-by

Board of Directors of the International Monetary Fund (IMF) on Tuesday, July 28, will consider the allocation of Ukraine third tranche stand-by loan in the amount of SDR2, 125 ($ 3.31 billion at current rates).

As the IMF report on the agenda of the meeting submitted a second revision of the program of cooperation between Ukraine and the Fund, supported by the credit stand-by, and asked the Ukrainian authorities to review a number of criteria for its performance.

IMF mission, who worked in Kiev in late June and early July, 10 July, reported reaching a preliminary agreement on the completion of the second revision of the program, and then proceeded to the formation of the relevant recommendations of the Board of Directors of the Fund.
It is estimated

mission, Ukraine fulfilled all the quantitative indicators, which were installed in the stand-by, and made good progress in strengthening the banking system.

mission noted that the decline in real GDP in Ukraine in 2009 may reach 14%, as previously expected at 8%, which agreed to the proposal of the Ukrainian authorities to raise the target for the budget deficit from 4% to 6% of GDP to include a deficit of NAK Naftogaz of Ukraine.

As a precondition for obtaining the third tranche has been described as the adoption of the law to facilitate the process of financial rehabilitation of banks, which was approved by the Verkhovna Rada at an extraordinary session on 24 July.

In turn, the Ukrainian authorities have asked to send all funds to the third tranche of the budget, primarily servicing the external debt.

As reported, the IMF approved a credit stand-by program for Ukraine, totaling SDR11 billion ($ 17.15 billion at current exchange rate) in early November last year and then allocated the first tranche of its billions of SDR3

updated on the first revision of the program schedule for the allocation of funds involves the Ukraine third tranche in the amount of SDR2, 125 billion for the second review, the fourth of SDR2, 5 billion (about $ 3.84 billion) - in case of successful completion of the third revision of the program in November 2009.

For the fourth tranche of Kiev will need to adopt amendments to the Law On restoringsolvency of the debtor or declaring it bankrupt, which would facilitate the possibility of pre-trial remediation and reduce excessive obligations.

In addition, since the end of September to commence the publication of detailed information about banks, in particular, as the assets and liabilities, owners.

Further, it is assumed that the fifth to eighth tranches on SDR375 million each and will be allocated on the basis of a quarterly review of the program.

provided that the flow of the sixth to eighth tranches will depend on the quantitative and structural criteria, which will be approved during the third revision of the program.