UPDATE 1-IMF says nearing board vote to release Ukraine bailout funds

09/01/2016 11:51

(Adds Lagarde comments, details on Mongolia)

WASHINGTON, Sept 1 (Reuters) - The International Monetary Fund said on Thursday it is "very close" to concluding its latest review of Ukraine's $17.5 billion bailout and expects its board to consider releasing additional funds in the second half of September.

IMF spokesman Gerry Rice told a regular news briefing that some technical issues related to the timing of further actions to be taken by Ukraine's government to meet program requirements still needed to be worked out.

"I think we are very close to concluding" the Ukraine review, IMF Managing Director Christine Lagarde told Reuters in an interview.

The government of President Petro Poroshenko has been "very focused on responding to the international community requests concerning the fight against corruption, concerning the financial status of the banking system, concerning the latest reforms that were included in the program," Lagarde said, adding that implementation of reforms was needed to sustain the program.

Neither Lagarde nor Rice discussed the amount expected to be released to Ukraine in the next tranche.

Ukraine's finance minister, Oleksandr Danylyuk, told Reuters on Tuesday he expects about $1 billion to be released, adding that this would unlock an additional $1 billion in funds guaranteed by the United States.

The latest IMF tranche was initially envisaged at about $1.7 billion. Some Ukrainian officials have said they expected the amount to be reduced because of slower-than-expected progress on reforms aimed at limiting the power of vested interests and modernizing the economy.

MONGOLIA MISSION

Rice, the IMF spokesman, also said in the briefing that the IMF stood ready to provide assistance to Mongolia following a staff mission to Ulaanbaatar in mid-August.

He said the IMF staff discussed a range of issues with officials from Mongolia's newly elected government

"We're carefully monitoring the country's situation. We stand ready to support Mongolia and the government as it works to address the challenges that it faces," Rice said.

He declined to say whether Mongolian officials had requested IMF funding.

Mongolia's economy, which five years ago had the highest growth rate in the world, has been hard hit by the collapse of commodity prices last year and the slowdown in commodities demand from China.

(Reporting by David Lawder; Editing by Andrea Ricci)

09/01/2016 11:51