IMF plans to change lending program to Ukraine - Rashkovan

The growing deficit of the state budget of Ukraine and the postponement of structural reforms have led the International Monetary Fund (IMF) to change the extended lending program (EFF) to stand-by, wrote the representative of Ukraine to the IMF Władysław Rashkovan on May 7 on his page on the social network Facebook. He explained that the negative changes are caused by the coronavirus pandemic: Government priorities have changed, for example, the budget law does not provide for significant revenues from privatization in 2020, which was one of the structural reforms planned under the IMF program. Also, the start of land reform is slightly delayed, although it is not superproblematic. At the same time, the budget deficit has grown as a response to the crisis. On this basis, the IMF decided to invite Ukraine and a number of other countries to take advantage of the stand-by program, which does not require much effort to obtain money. Changing the program from EFF to stand-by will not significantly affect the amount of funding Ukraine receives, Rashkovan said. According to him, when the economy of the country recovers, Ukraine will be able to return to the program of extended lending. That's when it comes in 12 14 months, summer 2021. That is when Ukraine will be able to start preparing for a new program of extended financing of EFF, the representative of Ukraine to the IMF summed up. According to the news agency, earlier the representative of the IMF in Ukraine was appointed a citizen of Bulgaria Ivanna Vladkova-Hollar. Read also: IMF appointed a new representative in Ukraine