Parliament approved in the first reading amendments to two laws on attracting foreign state loans from the International Monetary Fund, as a result of the increase in financial assistance for the country, IPN reports.
On May 11, the IMF’s Executive Board decided to increase lending under the Economic Reform Program from 400 million Special Drawing Rights to 594.3 million SDRs (about US $ 795.72 million). The program is supported by the Extended Lending Mechanism (ECF) and the Extended Financing Mechanism (EFF).
The two loans will be used to cover the urgent financing needs of the balance of payments following the negative shocks, including the war in Ukraine and the international sanctions imposed on the Russian Federation and the Republic of Belarus.
The draft amendment to the Law on the Attraction of External State Loans from the International Monetary Fund through the EFF and the draft amendment to the Law on the Attraction of External State Loans from the International Monetary Fund through the ECF are to be voted on in the second reading.
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Each IMF member country may use SDRs in its own quota according to domestic requirements. SDRs are a reserve asset created by the International Monetary Fund in order to supplement the existing reserve assets of IMF Member States.