Ukraine is counting on the International Monetary Fund to provide it with the second tranche of $750 million under the current $5 billion loan agreement in late November or early December, Prime Minister Denys Shmyhal said at a press conference on Sept. 14.
The IMF’s assessment mission will arrive to evaluate Ukraine’s reform progress within days, on Sept. 18. The results will determine whether the country gets any more money.
“Ukraine has fulfilled all the conditions, met all the benchmarks, which were underlined in the memorandum with the IMF. We expect this mission will go smoothly, which will be the final one in preparation for the next tranche,” Shmyhal said.
However, Ukraine has not yet checked off all 30 bullet points in its agreement with the IMF.
For example, it has not created the legal procedure to appoint the head of the National Anti-Corruption Bureau (NABU). Nor has it approved legislation strengthening the independence of the National Bank of Ukraine.
“We can get this next tranche amounting to $750 million in late November or early December,” the prime minister said.
So far, Ukraine has received just $2.1 billion in June 2020. Since then, the IMF has withheld additional tranches due to the country’s slow pace of reforms.
The IMF’s last assessment mission took longer than usual, lasting from December 2020 to February 2021, with a short Christmas break. It did not go well. Instead of money, Ukraine received a reminder of changes the IMF expects it to implement.
The deal between the IMF and Ukraine expires at the end of the year, making this the country’s last chance to secure another tranche.
Read more: IMF praises Ukraine for reforms, agrees to visit in September
