Ukraine and the International Monetary Fund
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Ukraine has been a member of the International Monetary Fund (IMF) and the World Bank since 3 September, 1992. The country is one of the IMF's four largest borrowers.[1]
History
Independence–Yanukovych
Ukraine became a member of the IMF and the
The IMF granted Ukraine a $16.4 billion loan in October 2008,[3] of which the government had received $10.6 billion in May 2010.[4] Further payments were frozen in late 2009, after Ukraine raised minimum wages and pensions contrary to IMF recommendations.[5]
Ukraine was the IMF's third-largest borrower in May 2010, after Romania ($12.5 billion) and Hungary ($11.6 billion).[4] The IMF approved a 29-month, $15.15 billion loan to Ukraine on 28 July, 2010.[6] Among other effects, this led to a 50-percent increase on household natural gas utility prices in July 2010 for Ukrainian consumers (a key demand of the IMF in exchange of the loan).[7][8] The Fund said on 20 December, 2013, that the second Azarov government had only partially implemented the 2010 agreements, "and in this connection the program had not been implemented".[9]
In December 2013,
Post-Maidan
In February 2014, Yanukovych and Azarov were
On 11 March, 2015, the Fund approved a four-year, $17.5 billion EFF for Ukraine; its first tranche of $5 billion was forwarded on 13 March, 2015.
On 21–29 May, 2019, an IMF mission led by Ron van Rooden visited Kyiv to discuss recent developments and economic policies regarding the Fund. At the end of the visit, it concluded: "The IMF staff team has had very productive discussions with the Ukrainian authorities, including with President Zelenskyi, on the review of Ukraine’s Stand-By Arrangement with the IMF. The team has found that fiscal and monetary policies remain on track, and it stands ready to return to Kyiv to continue discussions after the forthcoming parliamentary elections as soon as a new government has clarified its policy intentions".[34]
In late September 2019, an IMF mission left Ukraine without securing a new deal.
On 10 June, 2020, IMF's executive board has approved an 18-month, $5 billion standby arrangement for Ukraine.
2022 Russian invasion of Ukraine
On 5 March, 2022, the International Monetary Fund said it anticipated to forward Ukraine's request for $1.4 billion in emergency finance to its board for approval as soon as next week.[39]
See also
Notes
References
- ^ "The IMF at a Glance". IMF. Retrieved 2019-06-20.
- ISBN 0847693465, page 55
- Spiegel.de(27 October 2008)
- ^ a b Government to direct most of International Monetary Fund's loan to currency reserves, Kyiv Post (12 May 2010)
- ^ UPDATE 2-Ukraine seeks to overhaul IMF deal, tough talks ahead, Reuters (24 March 2010)
- ^ IMF Executive Board Approves US$15.15 Billion Stand-By Arrangement for Ukraine, International Monetary Fund (July 28, 2010)
- ^ With IMF deal done, Yanukovych’s challenges still ahead, Kyiv Post (July 29, 2010)
- ^ Gas price hike to raise tension in Ukraine, Kyiv Post (July 29, 2010)
- ^ IMF slams Ukraine's macroeconomic policy, Interfax-Ukraine (20 December 2013)
- ^ "IMF will consider 'Ukrainian issue' on Dec 16". Interfax-Ukraine. 9 December 2013. Retrieved 10 December 2013.
- ^ David M. Herszenhorn (22 November 2013). "Ukraine Blames I.M.F. for Halt to Agreements With Europe". New York Times. Retrieved 10 December 2013.
- ^ Ambrose Evans-Pritchard (22 November 2013). "Historic defeat for EU as Ukraine returns to Kremlin control". Daily Telegraph. Retrieved 10 December 2013.
- Oman Observer. Archived from the original on 25 January 2014. Retrieved 27 November 2013.(9 December 2013)
Ukraine police dismantle Kiev protest camps, BBC News - ^ "Ukraine crisis: EU signs association deal". BBC News. 21 March 2014. Retrieved 21 March 2014.
- ^ eeas.europa.eu: "Signatures of the political provisions of the Association Agreement" 21 Mar 2014
- ^ "Ukraine to sign political aspects of EU pact on Friday". Reuters. 2014-03-17. Retrieved 2014-03-19.
- ^ Croft, Adrian (21 March 2014). "European Union signs landmark association agreement with Ukraine". Reuters.
- ^ EU signs pacts with Ukraine, Georgia and Moldova, BBC News (27 June 2014)
- ^ EU, Ukraine to sign remaining part of Association Agreement on June 27 – European Council, Interfax-Ukraine (16 June 2014)
- ^ MF not insisting on single-stage increase in tariffs, says resident representative in Ukraine, Interfax-Ukraine (7 December 2013)
- ^ a b Ukraine to resume talks with IMF soon, says Yanukovych, Interfax-Ukraine (10 December 2013)
- ^ [1], Enria (18 December 2013)
- ^ Ukraine crisis timeline, BBC News
- ^ a b c d e "Ukraine agrees to 50% gas price hike amid IMF talks". BBC News. 26 March 2014. Retrieved 26 March 2014.
- ^ "Ukraine can now fix its economy – if it moves fast - FT.com". Financial Times. ft.com. 25 February 2014. Retrieved 2014-03-29.
- ^ a b http://www.ft.com/cms/s/0/737e3bd8-b587-11e3-81cb-00144feabdc0.html#axzz35r6JLhpy(subscription required)
- Ukrayinska Pravda(8 September 2014)
- ^ Ukraine gets second tranche from IMF under Stand-By Arrangement, Interfax-Ukraine (4 September 2014)
- ^ UNIAN(10 March 2016)
- Radio Free Europe(15 September 2016)
- ^ No IMF Money For Ukraine, Russia Says, Forbes (14 September 2016)
- AP News(18 December 2015)
- ^ UNIAN(30 December 2017)
- ^ "IMF Staff Concludes Visit to Ukraine". International Monetary Fund. 30 May 2019.
- ^ Radio Free Europe(October 17, 2019)
- ^ "Ukrainian Lawmakers Approve Political Novice Honcharuk As Prime Minister". RadioFreeEurope/RadioLiberty. Retrieved 2019-08-29.
- ^ Radio Free Europe(10 June 2020)
- ^ IMF praises Ukraine's decisions on land reform, banking law, Reuters (4 April 2020)
IMF finally confirms new $5 billion program for Ukraine by Anders Åslund, Atlantic Council (10 June 2020) - ^ Shalal, Andrea; Lawder, David (5 March 2022). "IMF says war in Ukraine will have 'severe impact' on global economy". Reuters. Reuters. Reuters. Retrieved 5 March 2022.