Finance Minister Oleksandr Shlapak meets with Ambassador of Germany Christof Weil

Minister of Finances Oleksandr Shlapak has met with the German delegation, headed by Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Ukraine Christof Weil.

The main topics for discussion were the restoration of financial cooperation with the International Monetary Fund and financial assistance of the European Union.

Joint work of the IMF mission and the Ukrainian Government regarding the launch of a new program of cooperation ended on March 27. It is designed for two years with the funding volume of 14-18 billion dollars. The first tranche of the program to be about $ 3 billion, half of the sum will go to cover the deficit of the State Budget of Ukraine.

Government of Ukraine together with the National Bank of Ukraine must complete a series of appropriate measures up to April 18 for a positive decision of the Board of Directors of the IMF on allocation of funding under the stand-by program. In particular, it concerns the monetary policy of the NBU, the banking sector, as well as measures to mobilize additional revenue, reforming the tax system, raising gas prices and heat to the public and others.

After receiving of the first tranche from the IMF, Ukraine will receive the first part of the funds under the Loan Agreement between Ukraine and the EU macro-financial assistance amounting to 610 million euros. The first tranche of the EU will be 100 million euros. Overall loan will be provided in three tranches amounting to 100, 260 and 250 million euros with three-month period of provision.

Subsequent tranches will be given by the results of the measures in the areas of public finance, trade, energy, and implementing tax policy and the financial sector.

However, the Commission also proposed assistance program of 1 billion euros, which will run in parallel with existing agreed program of 610 million euros.

These funds will be used to support structural reforms to improve the overall macro-economic management, strengthening economic governance and transparency, improving conditions for sustainable growth.

On 2-3 April 2014 it is expected next scheduled mission of experts from the European Commission, by the results of activities which may be decided to allocate additional financial assistance.

It should be also noted that Germany supported the provision of a package of financial assistance to Ukraine from the EU amounting to 11 billion euros at the meeting of the European Council March 6, 2014. EU financial aid package for the next few years is about 11 billion euros and includes macro-financial assistance in the amount of EUR 610 million and an additional macro-financial assistance in the amount of 1 billion euros.

For the purpose of operational management and use of financial aid to Ukraine from the EU, on the initiative of Chancellor Angela Merkel, a working group should be formed in the EU.