Shortly after the IMF decided to send another tranche to Ukraine, the World Bank is now considering two tranches of up to 500 million USD.
It’s tranche time! On December 10 and December 17, the World Bank will discuss extending two tranches of a total value of up to 500 million USD to Ukraine, reports Interfax-Ukraine. The money is directed at the COVID19 response and the effort to vaccinate enough Ukrainians to reach herd immunity.
The International Monetary Fund, IMF recently decided to continue payments of the $5 billion 18-month Stand-By Arrangement, which was signed in June 2020. As a result, Ukraine recently received $699 million and the move comes after several months where Ukraine has been put on ice after failing to meet the demands by the IMF.
“It is very good for Ukraine that the IMF decided to give the next tranche and extend the loan program until June next year,” says Kristian Andersson, the head of the Swedish bank SEB in Ukraine, to Ukrainenu, “It is important to international investors outside of Ukraine when an IMF program is up and running. The IMF is an anchor to them – a good signal.”
Same thing could be argued for the money from the World Bank which is sorely missed in Ukraine at the moment, who still suffer from the onset of the previous – or current – wave of COVID-19 that saw more than 20,000 daily cases at its peak. Unless the vaccination speed picks up, Ukraine is likely to see yet another fatal wave in the future.
Another problem has been going on for quite a while and is now starting to worry the Ukrainian Finance Ministry as well, reports Interfax-Ukraine:
“We cannot but be concerned about the prospect of raising interest rates on international markets, which will affect the cost of attracting a resource for Ukraine. The reason is the unprecedentedly high inflation rate in the countries of the world,” said Minister Serhiy Marchenko.