The IMF Won’t Save Ukraine
IMF came to Ukraine
IMF mission in Kiev to discuss financial sector reforms
KIEV – A mission from the International Monetary Fund (IMF) arrived in Ukraine on October 26, Ukrainian media reported, citing statements from a representative of the organization’s Kiev office. The IMF employee did not provide information on who led the delegation that arrived in the capital of Ukraine.
The IMF technical mission plans to stay in Ukraine until November 2 and discuss government programs for reforming the financial sector in Kiev. According to the UNIAN news agency, during their visit, the experts of the Fund plan to “consider, inter alia, the measures taken by the authorities to resolve the issue of problem loans, improve conditions for bank lending and priority areas of reform for 2013”.
This year, cooperation between the IMF and Ukraine on the stand-by program signed in 2010 was at the level of consultations and negotiations without financial assistance.
According to UNIAN, after the approval of the two-year stand-by program in the summer of 2010, Ukraine received the first tranche from the IMF in the amount of $ 1.89 billion. In December 2010, a second tranche of about $ 1.5 billion was allocated. After that, the allocation of funds for the program was frozen due to Ukraine’s failure to fulfill a number of its obligations, in particular regarding the increase in tariffs for gas and heat supply for the population..
In some of its previous statements following the negotiations with the IMF in 2011, the Ukrainian government was sympathetic to the Fund’s refusal to provide Ukraine with a loan..
“The government assures that the state budget of Ukraine for the next year will be realistic, and its deficit will be limited to a minimum, and reliable sources will be identified to finance the deficit. In addition, the improvement of the tax system will continue, the cost of the state apparatus will be reduced, and the National Bank of Ukraine will pursue a balanced monetary policy, ”the Mirror of the Week quoted November 5, 2011. Ukraine “statement of the press service of the Cabinet of Ministers of the republic following negotiations with the IMF.
Today the situation with IMF borrowings, judging by the statements of the official Kiev, looks different. Ukraine hopes to receive a tranche from the IMF without raising prices for household gas and heating, said Prime Minister Mykola Azarov, quoted by the government press service on October 24.
“I think that there are prospects for the continuation of our cooperation, we basically fulfill the requirements of the IMF according to the program,” Azarov said. – All basic monetary and quality criteria are met. Of course, this creates favorable conditions for the resumption of financing for Ukraine. We hope to reach this agreement “.