Resumption of cooperation with IMF favorable for Ukraine's credit rating - Moody's

19.09.2016 р., 14:00

"The IMF's resumption of the EFF program has buoyed market confidence and we expect that it will ease pressure on the hryvnia, allowing the National Bank of Ukraine to relax certain foreign exchange controls. The program's resumption also paves the way for an additional $1 billion in U.S. guaranteed debt, a EUR600 million (approximately $675 million) loan from the European Union (subject to the passage of specific legislation) and a $500 million World Bank-guaranteed loan to finance gas purchases," Moody's experts said. "Earlier an IMF spokesman suggested that the IMF may also provide an additional tranche of financing by the end of the year, although a precise timeline and list of criteria for such a disbursement has not been disclosed. Receiving an additional tranche would be credit positive, since it would put the troubled country in a stronger position to resist any new economic or political shocks," reads the agency's report. As reported, the third IMF tranche of $1 billion was transferred to the treasury account of Ukraine on September 16. The funds are provided under the four-year Extended Fund Facility (EFF) program worth a total of $17.5 billion to help Ukraine restore the economy and create conditions for self-development after the program is completed.

Resumption of cooperation with IMF favorable for Ukraine's credit rating - Moody's

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