Delay pause in cooperation with the IMF may worsen the welfare of Ukrainians, said the national Bank

Further delay in the resumption of cooperation with key creditor of Ukraine International monetary Fund, may result in negative consequences for the financial stability of our state and for the welfare of citizens.

This is stated in comments of the National Bank of Ukraine on further cooperation with the IMF is posted on the website of the regulator.

NBU stressed that the resumption of cooperation with IMF and other donors will contribute to the growth of international reserves of Ukraine in 2016 to 19.6 billion USD, and will send a positive signal to other international donor and private (foreign and domestic) investors that have a positive impact on the balance of payments and stimulate economic growth.

The regulator reminds that taking steps to ensure macroeconomic and financial stability, including the use of a restrained monetary policy to reduce inflation to the target level of 12% at end-2016, as well as foreign exchange intervention to smooth excessive fluctuations of the hryvnia.

«At the same time, the achievement of these goals is threatened by external shocks and domestic political instability. Given this, we believe is vital to the resumption of cooperation with international donors and, above all, with the International monetary Fund», — stated in the message.

As reported, the managing Director of the IMF Christine Lagarde said that the international monetary Fund is concerned about the situation in Ukraine, weakening of the public administration reform and the lack of effective fight against corruption, in connection with which the Fund may suspend the program of cooperation with Ukraine, because it will be very difficult to implement it.

Earlier, Finance Minister Natalia Jaresko noted that the international monetary Fund in the event of a change of government in Ukraine will take a break in the program of the eff and EFF will continue only through the willingness of new governments to honour the commitments made by their predecessors.

Open in March of 2015 four-year EFF program with the total volume of SDR12,348 billion (approximately 17,11 billion US dollars at current exchange rates) with the first tranche of 5 billion dollars initially expected quarterly revision of the programme and the allocation in 2015 of three more tranches of SDR1,18 billion (about 1.63 billion dollars) and a decrease in quarterly tranches in 2016-2018 to SDR0,44 billion (0,61 billion).

At the same time, Ukraine managed to get only the first two tranches, the first amounting to 2.7 billion dollars went to the government to support the state budget, while the recipient of the remaining funds traditionally have been the national Bank.

11 January Finance Minister Yaresko explained that the international monetary Fund (IMF) commended the law on state budget for 2016 and adopted the package of legislation, however, for the positive decision of the Fund about the allocation of Ukraine of the III tranche of the program eff EFF official Kiev is necessary to perform the obligations in the field of anti-corruption and other structural reforms.

21 January 2016 the President of Ukraine Petro Poroshenko met with Lagarde in Davos. «We hope to receive funds the next tranche (the third tranche) in February,» he said following the discussion.

Delay pause in cooperation with the IMF may worsen the welfare of Ukrainians, said the national Bank 11.02.2016

Февраль 11th, 2016 by
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