IMF agrees to provide Ukraine with next loan tranche of nearly USD 700M

According to Ukrinform, this was reported by Bloomberg, citing sources familiar with the matter.

The sources said that the IMF and the Ukrainian government had reached a staff-level agreement, paving the way for Ukraine to receive the next disbursement of almost $700 million.

The agreement still requires approval by the IMF Executive Board, which is expected to consider the matter next month.

According to the report, the breakthrough came after weeks of negotiations during the IMF’s recent mission to Kyiv.

One of the key issues requiring compromise concerned draft legislation to tax international parcels as part of efforts to reduce the size of Ukraine’s shadow economy. According to the sources, the IMF agreed to allow Ukraine to postpone the adoption of the legislation until July, effectively giving lawmakers additional time to fulfill the commitment.

The next round of talks between the IMF and Ukraine is not expected to take place before September.

This is the second IMF lending program for Ukraine since the start of Russia’s full-scale invasion more than four years ago.

As reported by Ukrinform, an IMF mission began its work in Ukraine on May 27.