Ukraine central bank says reform delays will slow IMF aid - Reuters

22:30, 06 July 2017
Economy
122 0

Ukraine's central bank said on Thursday that the government's delays in passing reforms mean Ukraine will probably receive $3 billion in aid from the International Monetary Fund this year instead of the $4.5 billion originally envisaged, according to Reuters.

REUTERS

The government is trying to push contested legislation through parliament, including raising the pension age and lifting a ban on land sales, as part of a $17.5 billion bailout agreed with the IMF in 2015, Reuters wrote.

One tranche of IMF aid will likely be postponed until 2018, acting Central Bank Governor Yakiv Smoliy told reporters at a press conference.

"Due to the fact that the consideration of important draft laws, which were key when the IMF Board of Directors decided to allocate the next tranches, are delayed ... we expect that one tranche will be transferred to the next year," he said.

Read alsoNo official confirmation from IMF on exclusion of land reform from Ukraine memo – sourceThe NBU has earlier cut its economic growth forecast for 2017 to 1.6% from 1.9% and said inflation had accelerated to 15% year-on-year in June, higher than predicted.

The central bank also said that "uncertainty remains regarding the implementation of macroeconomic policies and structural reforms necessary to maintain macrofinancial stability, increase the economy's potential and continue the program with the IMF."

Read alsoReform progress testament to Ukraine’s "impressive commitment" – European Commission VPThe central bank lowered its forecasts for forex reserves at the end of 2017 to $20 billion from $21.1 billion, and said the potential for an escalation in the conflict in Donbas posed a significant risk to the economy.

However, the bank played down the impact of last week's cyber attack on the Ukrainian economy.

If you see a spelling error on our site, select it and press Ctrl+Enter