IMF and Ukraine tentatively reached a 5 billion dollar loan agreement

The International Monetary Fund reached an agreement with Ukraine on a reserve loan for a year and a half, which will allow the Ukrainian authorities to use 3.6 billion SDR, which is equivalent to five billion dollars.

“The new SBA with the requested access to 3.6 billion SDR (equivalent to five billion dollars) is aimed at ensuring a balance of payments and budget support to help the authorities deal with the consequences of the shock from CoViD-19,” said Ivanna Vladkova Hollar, head of the group of negotiators from the IMF.

IMF management should consider this agreement in the next few weeks.

Negotiations of the parties were continued only after the Verkhovna Rada adopted a law on banking regulation with the aim of removing insolvent banks from the market.

This was one of the conditions of the IMF. Later, the bill was signed by President of Ukraine Volodymyr Zelensky.