#AceFinanceNews – UKRAINE – May 01 – The Executive Board of the International Monetary Fund (IMF) has approved a two-year Stand-By Arrangement (SBA) worth $17.01 billion for Ukraine, the IMF’s press service said on May 1.
As was earlier reported, Kyiv hopes to get the first $3 billion tranche of the new SBA between May 5 and May 8, 2014, Ukrainian Finance Minister Oleksandr Shlapak said on April 30. (Interfax-Ukraine)
“We’re waiting about $3 billion [in the first tranche]: $1 billion will go to the National Bank of Ukraine, $2 billion will cover the budget deficit.
We expect this from May 5 to May 8,” he said.
IMF PRESS RELEASE
#AceFinanceNews – WASHINGTON – April 11 – Ukraine’s parliament-appointed Finance Minister Oleksandr Shlapak, claims that Ukraine has complied with all terms necessary for getting the first tranche of financial assistance from the IMF.
“We are here for a more specific discussion of the time and conditions of [international] support,” Shlapak told the media in Washington where the spring meeting of the IMF and World Bank is under-way.
“Moreover, Ukraine has met all of the IMF conditions for getting the first tranche.”
The IMF earlier said it would be prepared to extend to Kiev $14-18 billion within the framework of overall international assistance of $27 billion within two years.
IMF Managing Director Christine Lagarde said on Thursday the Fund’s program for Ukraine might be presented to the IMF Board of Governors late April or in early May.
#AceFinanceNews – GREECE – April 01 – Greece is fully financed for the next 12 months, the chairman of Eurozone finance ministers Jeroen Dijsselbloem said on Tuesday.
The country does not want to ask the eurozone for a third bailout, although it is too early to say if it can fulfil that ambition, according to the official.
Full funding one year ahead is a condition for the International Monetary Fund (IMF) to disburse its part of the existing bailout.
According to (Reuters) Greece was cut off from markets in 2010 as the true scale of its debt burden became apparent. But after four years of painful measures to contain debt, two bailouts worth 240 billion euros ($330 billion) and a hit on private bondholders, the Greek economy is expected to return to modest growth this year.
Encouraged by falling bond yields, Greece is considering ending its four-year exclusion from bond markets by selling 1.5 billion-2 billion euros of five-year bonds in a test issue in the first half of the year.
The cash raised would complement money that Athens will get from the euro zone and the International Monetary Fund after a deal in March which unblocks the payment of overdue tranches.
The certainty that Greece will have enough money over the next 12 months to cover its expenses is important because it is a condition for the IMF to keep lending to Athens even after euro zone loans stop at the end of 2014.
“We had assurance from the Troika institutions that Greece is fully financed for the coming 12 months,” Reuters quoted Dijsselbloem as saying.
#AceFinanceNews – KIEV – March 31 – Chairman of the National Bank of Ukraine (NBU) Stepan Kubiv on Monday held the final meeting with a group of World Bank (WB) experts that worked in Ukraine in the period from March 24 to 28.
The NBU press service reported that the experts with Aleksander Pankov in the head had worked in Kiev in order “to determine the priorities and activity guidelines for the Ukrainian financial sector reform that can be implemented with support of the World Bank.”
The WB experts during last week had prepared a plan of action to promote the Ukrainian financial sector reform, the NBU press service said.
This programme can be financed by means of a WB loan worth up to one billion US dollars, granted within the programme of loans for development.
“The action plan will allow the Ukrainian banking system to make a cardinal reconstruction and strengthen stability of the banking sector,” the NBU stresses.
Simultaneously with the WB expert group, a mission of the International Monetary Fund (IMF) was working in Ukraine.
The IMF mission was co-ordinating the terms for granting a loan worth 14 – 18 billion US dollars.
Russian Finance News
#AceFinanceNews – KIEV – March 27 – International Monetary Fund (IMF) is ready to provide Ukraine with $14-18 billion within the common international financial aid program during the two following years.
Head of IMF mission Nikolai Georgiev said this at a briefing on Thursday.
“We have reached an agreement on the economic reforms program in Ukraine, which will be covered by a Stand-By Arrangement program worth $14-18 billion within two years.
The program will give way to financial aid.
The volume of this unblocking is $27 billion within two years,” Georgiev said.
He added that the first tranche would be handed in April, but did not disclose its sum.
Georgiev noted that the tranche would depend on Ukraine’s compliance with the necessary requirements.
#AceFinanceNews – MOSCOW – March 25 Russia has not been cooperating with the International Monetary Fund in searching for ways of providing financial assistance to Ukraine so far.
The Ukrainian side and the International Monetary Fund continue such a search, and we (Russia and IMF) do not, as far as I know,” Russian presidential spokesman Dmitry Peskov said on Tuesday, adding that a Russian representative worked at the IMF, thus “Russia indirectly participates in the process.” “However, it is difficult to speak of disbursing financial aid until Ukraine chooses new legitimate authorities,” Peskov said.
#AceFinanceNews – EUROPEAN UNION – European lawmakers are calling into question the ability of the Troika to effectively deal with the crisis, and many are attacking its methods.
An investigation report due in April will look at the handling of the Greek sovereign debt debacle.
The probe by the European Parliament on how the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC) monitored and helped to solve the euro debt crisis, which started in 2008, triggered by the US financial collapse.
“The Troika acts like a governor and visits it’s colonies in the south of Europe and tells them what to do. The measures that they come up with though are not always very effective,” Derk Jan Eppink, an MEP from Belgium who initiated the probe into the Troika, told RT.
The IMF has admitted it made mistakes in the handling of Greece’s first international bailout, but some EU lawmakers want more answers.
Findings are expected to be published in April 2014, a month before the next EU Parliamentary elections.
RT – Finance News and Media Sources
#AceFinanceNews – Moscow – March 19. The Council of IMF and World Bank Governors and a meeting of the G20 financial ministers and central bank governors will be held in Washington on April 11-13.
Storchak cited the financial crisis in Greece, which was discussed within the G20 in terms of its influence on financial stability in general.
Ukraine will not be in the focus of the G20 financial meeting in Washington in April, Russian Deputy Finance Minister Sergei Storchak said “We believe that the G20 remains a club for discussing and preparing decisions on economic issues and financial markets. This is our position,” he said. He also noted that an IMF loan to Ukraine would not be on the agenda of the Washington meeting. “The IMF has a delegation in Kiev, the delegation will return and propose a program,” Storchak said, adding that the decision to issue an IMF loan to Ukraine was in the jurisdiction of the IMF governors. #AFN2014
#AceFinanceNews Greek public sector workers shut schools and left hospitals at emergency staffing levels Wednesday, Reuters reported.
They are protesting against thousands of new job cuts demanded by Greece’s foreign lenders. Doctors, teachers and school guards joined the 24-hour strike and planned marches to parliament.
Labour unions fear the centre-right Greek government will impose even more wage and pension cuts to meet the targets of its 240 billion euro bailout deal with the EU and IMF.