Ukraine expects to obtain up to USD 10 billion under loan agreements in 2016

This article tells about the expected amount of #financial assistance Ukraine seeks to receive from the #International Monetary Fund, #European Union, and #World Bank in 2016.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.

In 2015, Ukraine obtained almost USD 11 billion from various lenders. The Cabinet of Ministers announced that in 2016 they expect to attract USD 10 billion under loan agreements with international lenders. The Prime Minister of Ukraine stated that the large portion of such funds will be provided by the International Monetary Fund, World Bank and G7 countries.

In contrast, the expectations of the Chairman of the National Bank of Ukraine are different. She stated that the overall loan facilities in 2016 will amount to USD 8.87 billion.

In particular, Ukraine expects to receive USD 4.58 billion from the International Monetary Fund, USD 1.55 billion from the European Union, USD 1 billion from the United States of America, USD 0.21 billion from the World Bank and USD 1.53 billion from other sources.

The Chairman of the National Bank of Ukraine also said that the third tranche from the International Monetary Fund in amount of USD 1.7 billion will be received at the end of January 2016. However, she stated that it might be also possible for the International Monetary Fund to combine the third and fourth tranche and provide funds in amount of USD 3.4 billion.

We note that the third tranche from the International Monetary Fund was expected in December, but due to the late tax reform and adoption of the state budget of Ukraine for 2016, it was postponed. The International Monetary Fund has issued the statement in which it warned Ukraine that the programme of financial assistance between Ukraine and the Fund might be suspended if the state budget is adopted contrary to the International Monetary Fund’s requirements. The decision of the Board of Directors of the International Monetary Fund as to whether to continue to provide funding for Ukraine is crucial for other lenders. It is expected that following the positive decision of the International Monetary Fund Ukraine will receive up to USD 2.3 billion from various other lenders.

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