Ukraine initiated a halving of the size of the tranche as a result of the seventh review of the Extended Financing Mechanism program with the International Monetary Fund, as it currently does not have an urgent need for additional funds and plans to attract them later. About this reported Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev.
“This is the position of the Ministry of Finance, which was formed taking into account several circumstances. First, taking into account sufficient current liquidity, sufficient balances of funds in the Unified Treasury Account. And indeed, the current state of public finances is quite good, given this and the sufficiency of international reserves, there is no need to receive the money now provided for in the program in full.”, – Hetmantsev explained.
He emphasized that Ukraine is not giving up these funds, but it is only about transferring payments to the next tranches.
“We can agree with this position of the government. Because if the budgetary needs of 2025 are more or less covered thanks to the already confirmed international aid, then with 2026, and especially with 2027, we still have, unfortunately, the greatest uncertainty of all time, starting from February 2022.” – noted the deputy.
Hetmantsev also added that postponing the raising of part of the funds will save on debt service:
“Postponing the terms of receiving part of the loan is also about saving on debt service. The savings will be small, but, let’s agree, not superfluous for the budget.”
