IMF approves new $8.1B financing program for Ukraine – Svyrydenko

The Executive Board of the International Monetary Fund has approved a new four-year Extended Fund Facility program for Ukraine totaling $8.1 billion.

Ukraine's Prime Minister Yulia Svyrydenko stated this on Facebook, Ukrinform reports.

"The first tranche of approximately US$1.5 billion is expected soon. The funds will cover the budget deficit and support macrofinancial stability," she said.

According to her, the IMF-supported program is part of a broader financial framework designed to cover the projected state budget deficit of $136.5 billion over four years. It provides the continuation of reforms that have ensured macroeconomic and financial stability in previous years.

"The new cooperation program with the IMF for Ukraine is an anchor for all international financial support, in particular for obtaining the €90 billion loan from the European Union," the Prime Minister noted.

In addition to EU financing, this also concerns funding from G7 countries and international financial institutions, as well as a reduction in debt payments on official debt through a debt relief mechanism. Partners confirmed the continuation of the current moratorium on servicing official debt and their readiness to complete restructuring after the situation stabilizes.

As Ukrinform previously reported, a few days ago Prime Minister Yulia Svyrydenko stated that the Ukrainian government had managed to reach an agreement with the IMF to increase the annual threshold for sole proprietors, after reaching which they must register as VAT payers.

During a visit to Kyiv on January 15, IMF Managing Director Kristalina Georgieva stated that the issue of introducing VAT for sole proprietors in Ukraine needs to be resolved.

Photo: Office of the President