This paper examines the First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility for Dominica. The authorities were encouraged by the stronger-than-envisaged performance, but considered it premature to change the macroeconomic framework. The recent encouraging developments on the growth front enhanced the credibility of the macroeconomic framework and increased the chances of success. The authorities embraced the ambitious structural reform agenda as a necessary course of action to address the complex problems faced by Dominica.
proposal, and consultations with private and bilateral creditors are proceeding. While they are hopeful that a comprehensive debt deal can be finalized by mid April –thus avoiding the re-emergence of acute financing pressures– there is still a risk that the agreement may fall short of what is needed to restore sustainability despite the authorities’ best efforts. The international communities’ continued support of the authorities’ debtrestructuringefforts, particularly bilateral creditors, will be critical in moving this process forward and securing restructuring terms
implementation, external financing commitments remain adequate to close the financing gap through the end of the program.
53. The authorities’ debtrestructuringefforts have thus far been consistent with the requirements under the policy on lending into arrears to official bilateral creditors . The authorities have continued to pursue good-faith efforts. In terms of process, they have offered to meet with the Russian authorities, offering substantive dialogue in a collaborative process to reach an agreement with Russia on the restructuring of the US$3
authorities’ debtrestructuringefforts have thus far been broadly consistent with the financing and debt objectives set under the program . In particular, and as explained in more detail in the DSA (Annex I), the debt operation launched in late summer 2015 is assessed as providing the targeted external debt service relief, placing public debt clearly on a downward path, and reducing post-program gross financing needs as originally envisaged in the program:
Target 1 . The debt operation is estimated to reduce Ukraine’s external debt service payments by US$15.7 billion
This paper discusses Ukraine’s Second Review Under the Extended Fund Facility and Requests for Waivers of Nonobservance of Performance Criteria (PCs), Rephasing of Access and Financing Assurances Review. The economy of Ukraine has stabilized and is showing signs of a gradual recovery. Following a severe economic crisis, activity is picking up, inflation has receded quickly, and confidence is improving. International reserves have doubled to more than US$14 billion. Continued policy implementation is needed to achieve program objectives, given the still significant challenges lying ahead. The IMF staff supports the completion of the second review, and the authorities’ requests for waivers of the missed PCs, rephasing of access, and financing assurances review.
This 2016 Article IV Consultation shows that following a severe crisis in 2014–15, the economy of Ukraine is growing again. The flexible exchange rate and tight fiscal and monetary policies have greatly reduced internal and external imbalances. The current account deficit fell sharply, from more than 9 percent of GDP in 2013 to 3.6 percent of GDP in 2016. The overall fiscal deficit declined to 2.3 percent of GDP in 2016. Growth will remain at 2 percent in 2017 due to the impact of the blockade in the eastern part of Ukraine, but is expected to reach 3 percent in 2018 as the economy adjusts and about 3.5–4.0 percent over the medium term.