IMF will undertake more frequent consultations with Ukraine
2013-07-30 16:01:06
The Executive Board of the International Monetary Fund has decided that Ukraine is expected to engage in post-program monitoring (PPM) with the Fund, following the expiration on December 27, 2012 of the Stand-By Arrangement (SBA), the IMF official website informs about this.
The Executive Board took a decision on the simplified procedure without formal discussions on July 26, the IMF official website informs.
“The central objective of PPM is to provide for closer monitoring of the policies of members that have substantial Fund credit outstanding following the expiration of their arrangements. Under PPM, members undertake more frequent formal consultations with the Fund than is the case under surveillance, with a particular focus on macroeconomic and structural policies that have a bearing on external viability,” the IMF explained.
First consultations will be held jointly with annual consultations on Article IV (obligations on the foreign currency regime), and consideration of the Ukrainian issue by the IMF Board of Directors is previously planned for December 2013.
The IMF reminds that the 29-month Stand-By Arrangement (SBA) at the moment of opening envisaged allocation of SDR 10 billion (USD 15.2 billion), however Ukraine got only two tranches at SDR 2.25 million (about USD 3.4 billion). As of June 30, 2013, Ukrainian outstanding credit to the Fund was SDR 5.27 billion (about USD 8 billion) or 383.8 percent of the country's quota.
The Fund notes that the amount of Ukraine's outstanding credit exceeds the 200% quota of the country, following which usually a post-program monitoring is initiated.