Ukraine Hopes to Receive 4th IMF Aid Tranche in Beginning of 2017

Ukraine hopes to get the fourth tranche of the International Monetary Fund's (IMF) financial aid in January - February 2017, Ukrainian National Bank head Valeriya Hontareva said Thursday.

KIEV (Sputnik) — The key requirements of the IMF to Ukraine are the adoption of national budget for 2017 and recapitalization of 40 banks, agreed upon with the fund, she added.

"Unfortunately, as we have already announced, we are not receiving the tranche this year, but we hope that … the tranche will arrive in January – February," Hontareva told at a press briefing.

The IMF mission visited Ukraine on November 3-November 17 to review economic progress that was to determine whether the fund allocates the next tranche of up to $1.3 billion to Kiev before the end of the year.

The mission noted that the Ukrainian economy is showing signs of recovery and growth is expected to reach 1.5 percent in 2016. However, per capita GDP remains at the second lowest in Central and Eastern Europe. Kiev should accelerate reform of inefficient state-owned enterprises, tackle corruption and continue fiscal consolidation to ensure debt sustainability, the statement said.

In March 2015, the IMF approved a four-year program of financial aid to Ukraine, which stipulates a $17.5 billion loan to be paid out in installments over four years and originally open for review on a quarterly basis.