Ukraine to get third tranche worth US $3bn from IMF after June 15

The International Monetary Fund has agreed to release the third tranche of its Stand-By loan after June 15. The chief of the IMF mission to Ukraine, Ceyla Pazarbashioglu, announced this during a conference call from Washington DC.

Ms. Pazarbashioglu noted that the size of the third tranche could either be 2.125bn SDR (Special Drawing Rights) or around 3bn US dollars.

Based on the next review of the program of cooperation between Ukraine and the IMF is slated for June. Should this review go well, the Board of Directors of the IMF could agree to release the third tranche after June 15.

The cooperation program between Ukraine and the IMF calls for quarterly monitoring on the part of the Fund to determine how Ukraine is fulfilling its commitments under their agreement. The IMF is planning to issue equal sums for the third and fourth tranches of its Stand-by loan to Ukraine.

On November 5, 2008, the IMF agreed to issue Ukraine a Stand-by loan worth around US $16.4bn to help the country cope with its economic recession. On November 10, the Fund released the first tranche of this loan, worth US $4.5bn. On May 8, 2009, the IMF Board of Directors agreed to release Ukraine’s second tranche of the Stand-by loan, worth US $2.8bn.