The Ministry of Finance says that the International Monetary Fund has changed its approaches to the duration of programs with countries and offers an option to continue cooperation with Ukraine on a shorter Stand-By lending program, taking into account the large-scale financial and economic crisis in the world due to the pandemic COVID-19 and general economic uncertainty about the duration and intensity of its impact. “At the same time, the amount of the program for the respective periods remains unchanged. At the same time, the negotiations with the International Monetary Fund are continuing.
The question of the modality of the program (EFF or Stand-by) is still under discussion. The main difference between these programs lies in the period of their implementation: Stand-by – 1.5 years, EFF – 3 years, ”the Ministry of Finance said on Facebook. According to the Ministry of Finance, the government plans to finalize negotiations with the IMF next week.
Earlier today, IMF spokesman Jerry Rice said that the focus of negotiations between Ukraine and the International Monetary Fund has shifted from a three-year EFF cooperation program to an 18-month stand-by program “given the unprecedented uncertainty over the economic and financial outlook and the need to focus political priorities on short-term containment and stabilization ”. According to him, the fund is in contact with the Ukrainian authorities regarding the parameters of a new financing mechanism that would help the country to effectively counteract the pandemic in the economy and medicine.