Managing Director at International Monetary Fund, Kristalina Georgieva, praised Ukraine’s economic progress and agreed to visit Kyiv in September to continue talks on giving another tranche to Ukraine during a phone call with Ukraine’s President Volodymyr Zelensky on July 28.
Georgieva called the conversation with Zelensky “very constructive” on Twitter. Her Ukrainian counterpart responded calling the IMF an important partner.
In July, Ukraine passed a host of crucial bills from the IMF’s list of conditions necessary to receive the second tranche under the current $5 billion stand-by program which ends in December.
Yet, Ukraine has only gotten one tranche so far – $2.1 billion, and over a year ago. Since then, Kyiv has been unable to convince the IMF that it is working hard on the reforms necessary to get the next tranche.
Talking about Ukraine’s efforts to meet conditions of the IMF for receiving the next tranche, Zelensky and Georgieva discussed the new law on the National Bank of Ukraine and the bill on the National Anti-Corruption Bureau, according to the President’s Office.
The first one was passed by the parliament back on June 30. This law increases the responsibility of the National Bank’s management board and supervisory council for the decisions they make. However, as it appears from the phone call, the IMF wants it to be amended.
The National Anti-Corruption Bureau bill to regulate the procedure of the appointment and dismissal of the head of the NABU, has been voted on in the first reading. After passing the bill, lawmakers went on recess. They will return to work in early September.
Zelenksy’s office hoped to convince the IMF to release the money before the lawmakers pass the NABU bill in the second reading. They wanted the second tranche, $700 million, by September, because that is when Ukraine must pay start to pay back its $3.8 billion in public debt. With the IMF mission coming to Ukraine only in September, this plan is failing.
Read more: One week left to persuade IMF give Ukraine money under current deal
Moreover, it is still unclear whether or not Ukraine will be able to receive money from the IMF by the end of the year before the program expires in December.
“Does the visit of the mission mean that we will receive the next tranche? No,” Serhiy Fursa, investment banker at Dragon Capital said on Facebook.
“Is there any theoretical possibility for Ukraine to receive money under the IMF program? In theory, yes. But very theoretical. In September, the issue of the budget arises which will delay the negotiations even further,” he added.
According to Fursa, there is also the chance that the IMF extends the current program for Ukraine.
