Translated by Ollie Richardson
The Minister of Finance of Ukraine Aleksandr Danilyuk expects that his country won’t need to cooperate anymore with the International Monetary Fund (IMF) after the end of the sixth program. He wrote about this on his page on Facebook.
In March, 2015, the IMF approved the four-year credit program for Ukraine totally $17.5 billion. It replaced the former program of 2014, which was two years old and remained incomplete. Within the framework of the new program Ukraine received four credit tranches across long intervals for the total amount of about $8.38 billion, the last of them being received on April 5th, 2017, for the sum of $1 billion.
“I want it so that our sixth program with the IMF to be completely realized and to become the last one. Ukraine, with its potential, can and must become economically and financially self-sufficient. Thanks to the reforms that we implement and we can implement even within the framework of cooperation with the Fund, our economy will continue to be restored. If we don’t change course soon, in the near future Ukraine, as a shareholder of the IMF and World Bank, will help others who will decide to change and develop,” he reported.
The Minister reminded that the State begun cooperation with the IMF 25 years ago. “Ukraine began IMF programs more than once, between 1994 and 2013 there were five. And none were fulfilled. Every time several trenches were received at the beginning, and after everything came to an end as the authorities didn’t want or weren’t capable of fulfilling the undertaken obligations,” he explained.
According to Danilyuk, at present, it is necessary for the country that “cooperation with the IMF and the World Bank gives confidence to foreign investors and partners that Ukraine moves in the correct direction, and reforms will be continued”.
However, contrary opinions also exist in the country: the leader of the social movement “Ukrainian Choice — the Right of the People” Viktor Medvedchuk considers that the economy of Ukraine works for the repayment of the credits. According to him, just until the end of 2017 the State “must pay $1.25 billion on external debts and about $0.73 billion more on currency domestic government bonds”, and at the same time “the gold and foreign exchange reserves of Ukraine are less than $17.8 billion (versus $24.5 billion for the beginning of 2013) and are replenished mainly at the expense of loans”.
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