Minister of Foreign Affairs of Ukraine Pavlo Klimkin said that Ukraine could receive the first tranche of new macro-financial assistance from the European Union before the end of this year. However, he said that the funds will be received only if the International Monetary Fund's loan program is renewed.
“Of course, we count on the IMF, but I’m sure that we will successfully finish every necessary negotiation. The international financial institutions always act in strict coordination and the signing of the memorandum is important evidence that we are on the path to successfully overcome every negotiation obstacle. I know when the first tranche will be transferred but it will be announced later by the Ministry of Finance. I can say that we expect to receive it this year,” said the Minister.
An agreement on the new macro-financial assistance in the amount of 1 billion euros will be signed this week during a visit by European Commission Vice-President Valdis Dombrovskis to Kyiv.
This will be the fourth program of macro-financial assistance to Ukraine. The first two were established in 2014 to 2015 when the European Commission allocated 1.61 billion euros to Ukraine. Ukraine received another tranche of 1.2 billion euros under the third program in 2015 and 2017. The third and last tranche was never received because of authorities' inability to follow EU requirements.
The new macro-financial assistance program consists of two payments within two and a half years. The loan is intended to support economic stabilization and a program of structural reforms and will supplement the funds received from the IMF and other donors. The allocation of macro-financial assistance is tied to the implementation of the International Monetary Fund program, whose mission is in Kyiv.