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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Second Installment of IMF Loan Has Been Approved

3 November, 1998 - 00:00


The IMF Board of Directors has disbursed the second tranche of the
EFF loan to Ukraine. Although official Kyiv was counting on no less than
$125 million, the amount of the infusion, $78 million, was estimated by
the Fund experts as the price of meeting the memorandum conditions, including
the Premier's submission to Parliament the government's action program
and the 1999 draft budget. The government pretended to be pleased with
amount the allocated.

One would think that some changes should now be expected in exchange
rate policy. Presidential Adviser Valery Lytvytsky believes that since
the Hr. 3.4-4.0/$1.0 rate is over-devalued, the hryvnia now has a chance
to rise. At the same time, according to earlier speculations, the second
tranche, just like the first one in the amount of $257 million, will be
used to replenish the NBU reserve funds, which, according to Lytvytsky,
have lately grown by $150 million.

PS. Next year, the Ukrainian government is planning to attract
$2.5 billion in foreign and to pay off $1.25 billion of its foreign debt.
According to Deputy Finance Minister Serhiy Makatsariya, as of mid-October,
Ukraine's total foreign debt was $10.85 billion.

 

 

 

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