“All is lost” has been postponed. Danyluk says that Ukraine will cope without the IMF loan

“All is lost” has been postponed. Danyluk says that Ukraine will cope without the IMF loan

© Reuters

To continue program funding, the Parliament should adopt four laws.

In Ukraine enough financial resources to do without for the next tranche of $ 1.3 billion from the International monetary Fund, if these funds will not be available until the end of 2016. The money will still go to the reserves of the national Bank, not in the budget. Another problem that Ukraine will not receive the upcoming state budget revenues from large privatization, which never started, and the next tranche of 600 million euros from the EU.

This “Economic truth,” said the Finance Minister Oleksandr danylyuk.

“All is lost” will not. The IMF tranches are not in the budget and in reserves of the NBU. The following is not an exception. Even if we don’t get it this year, we will not need to find money for its replacement, as in the case of failure to receive macrofinancial assistance from the EU or shortfall of revenues from privatization”, – said danyluk.

See also: the Finance Ministry has assured that the IMF does not require raising the retirement age in Ukraine

The receipt or non-receipt of the tranche will not affect the implementation of the budget in 2016.

“Tranche of the IMF is primarily a signal that the program continues. It is important for external investors and other international organizations. Recently, Fitch Ratings upgraded long-term rating of Ukraine to b-, which will allow the government and national companies to borrow on foreign markets at lower rates. This was possible also thanks to the reforms that we are doing with the support of the IMF. It is important to continue the reforms not only in the framework of the IMF program,” – said the Minister of Finance.

To receive the next tranche of the IMF loan requires the adoption of four of the law on pension reform, a model of the market of agricultural land, reducing the list of state enterprises subject to privatization (i.e. sale of state-owned companies to investors), the reform of state-owned banks.

“The reform of state-owned banks, among other things, provides for the establishment of an independent Supervisory boards that will help to make the management of state-owned banks more transparent and efficient,” said danyluk.

We will remind, in Kiev worked with the IMF mission. In her statement, she indicated that in Ukraine, the sluggish reforms continue that including interfere with the oligarchs in power.

Comments

comments