IMF Ukraine Mission Expected To Take Place In Coming Weeks

At the bi-weekly press briefing, IMF Spokesperson Gerry Rice said the IMF Ukraine mission is expected to take place in coming weeks.

"We are anticipating the next review mission that will be a technical mission, in mid-November. Since the policy discussions cannot be completed for the review until the new government is formed -- that is going to take some time, we all understand – that may not complete the discussions until the new government is in place. So it's possible that the review will not be brought to the IMF Board until later this year, or even early next year."

IMF Executive Board approved a two-year, US$17 billion program with Ukraine on April 30, 2014, which was the exceptional access with 800 percent of the country's quota. Then on August 29, the IMF Board approved the first review of the program, and disbursed about US$1.39 billion.

Rice also commented on the ongoing IMF discussion with Greece, saying "At this stage, we are looking forward to receiving from the authorities the full set of policy proposals that could serve us as the bases for the further discussions. That would also determine the timeline for the return of the mission."

The 4-year Extended Fund Facility (EFF) with Greece was approved on March 15, 2012, for SDR 23.8 billion (about €28 billion). The fourth review of the program was completed on July 29, enabling the disbursement of SDR 1.51 billion (about €1.72 billion, or US$2.29 billion). Fund disbursements from this arrangement total €11.58 billion to date. The fifth review was completed on May 30, 2014. As for the next mission, Rice added "I don't have the specific date for you right now."

With the U.S. Fed announcing the end of monthly bond purchases yesterday, Gerry Rice said "We welcome the Fed's well-communicated steps toward gradual normalization of the monetary policy. These are supported by the continued improvements in the U.S. economy as typified by today's GDP release and recent improvements of labor market indicators."

In the IMF's view, the accommodative monetary policy stance by the Federal Reserve over the past few years has provided important support to the economy and remains appropriate.

Meanwhile, despite stepped up support from the international community in recent weeks, the Ebola outbreak continues to spread in Guinea, Liberia and Sierra Leone and it could be well into the second half of 2015 before it is brought under control.

Rice cited the recently published IMF Sub-Saharan Africa Regional Economic Outlook, and stated "The outlook for those countries, Ebola-hit countries, has worsened with large financing needs likely for 2014-15." Significant financing gaps are emerging for 2015. Further budget support from bilateral and multilateral donors, preferably in grant form, will be needed. "We discussed this recently at the Annual Meetings with the authorities concerned. They certainly painted a serious picture of the situation. We continue to work closely with the effected countries," Rice added.

SHOTLIST:
30 OCTOBER 2014, WASHINGTON DC

IMF HQ exterior
IMF logo
Reporters
U.S. Federal Reserve exterior

SOUNDBITE: (English) Gerry Rice, IMF Spokesperson:
"We are anticipating the next review mission that will be a technical mission, in mid-November. Since the policy discussions cannot be completed for the review until the new government is formed -- that is going to take some time, we all understand – that may not complete the discussions until the new government is in place. So it's possible that the review will not be brought to the IMF Board until later this year, or even early next year."

SOUNDBITE: (English) Gerry Rice, IMF Spokesperson:
"At this stage, we are looking forward to receiving from the authorities the full set of policy proposals that could serve as the basis for the further discussions. That would also determine the timeline for the return of the mission. So I don't have the specific date for you right now."

SOUNDBITE: (English) Gerry Rice, IMF Spokesperson:
"We welcome the Fed's well-communicated steps toward gradual normalization of the monetary policy. These are supported by the continued improvements in the U.S. economy as typified by today's GDP release and recent improvements of labor market indicators."

SOUNDBITE: (English), Gerry Rice, IMF Spokesperson: "The outlook for those countries, Ebola-hit countries, has worsened with large financing needs likely for 2014-15. We discussed this recently at the Annual Meetings with the authorities concerned. They certainly painted a serious picture of the situation. We continue to work closely with the effected countries."

DURATION: 02:20