The IMF Will Melt The New Ukraine Fund.
The International Monetary Fund signaled it could dilute the 1.7 billion dollars in bailouts (the bailout) to Ukraine next week, when the country struggled out of the civil war and seeking private sector debt relief.
The IMF Executive Board is scheduled to meet on July 31 to decide on the disbursement of a second four-year support package in the country, the IMF spokesman Gerry Rice said.
Payment agreement "is possible as long as it meets the usual persyararatan we need," Rice said at a routine press conference, yesterday.
In early July, the IMF said that the second disbursement will come after the completion of a certain, unspecified action and in conditions that will allow the IMF staff to assess whether public debt sustainable Ukraine "with high probability".
The IMF gave Ukraine a four year support program worth 17.5 billion u.s. dollars in March, as the economy nears collapse after more than a year hit by civil war, with the help of an initial five billion dollars has been released.
The Washington-based institution, with 188 Member States, initially requires its assistance program in the country after it reached a deal with creditors that will reduce the burden of debt service payments of 15.3 billion u.s. dollars over the past four years.
Kiev has been working to alleviate some of the debts, but the Ad Hoc Committee of holders of bonds, Ukraine — especially four investment firms and hedge funds — the U.S. said that the extension of the repayment period will be sufficient to achieve the goal.
"The authorities and the ad hoc creditors Committee had made good progress in their negotiations," said Rice, although no formal agreement has been reached.
"Further progress is expected on July 31," said Rice.
Meanwhile a spokesman for the IMF warned that Kiev should "avoid policy reversals" on reforms demanded by the IMF in Exchange for bailouts.
Asked about the approach of the IMF bailouts seem looser for Ukraine as compared to Greece, Rice noted that they were "two very different countries — the situation is very different." https://www.mql5.com/en/signals/120434#!tab=history
