A Ukrainian Deputy Called to Blackmail the IMF with a Default

Translated by Ollie Richardson



Aleksandr Kirsch emphasised that the authorities can’t raise gas tariffs to fulfil the requirement of the International Monetary Fund (IMF). In this regard, Kiev, said the Rada deputy, should bargain more rigidly with the IMF and even it threaten with a default.

Aleksandr Kirsch, deputy of the Verkhovna Rada: “We need to proceed not only from the net cost, but also from the ability of the population to pay it. Since the population isn’t able to pay the prices, it is possible to raise with the IMF the question of a default with the same gravity as the one that happened in Greece. To blackmail the IMF with a default”.

According to Kirsch, creditors must be frightened of a default since today Ukraine is a barrier “separating the West from Russia”.

It should be noted that the financial system of Ukraine since March, 2015 is supported by the four-year program of the IMF, the total amount of which should be 17.5 billion dollars.

However, there was a problem with the fifth tranche, which the Ukrainian authorities expected to receive before the end of 2017. The matter is that in exchange for financial aid it was demanded from Kiev to undertake a number of reforms. In particular, this concerns the law on privatisation, the creation of the anti-corruption court, and settling the issue with gas prices.

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