The hryvnia collapsed to force the Rada to accept the IMF conditions
Moscow - Kyiv, February 27 (PolitNavigator, Mikhail Stamm) - The collapse of the hryvnia, no matter what the leadership of Ukraine says about it, is beneficial to it: it will allow the Verkhovna Rada to push through the reform of the pension system, ease the bankruptcy procedure for energy companies suffering from non-payments, and recalculate the budget for 2015 at the real exchange rate.
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Conditions for a currency panic in Ukraine will persist until the first half of March 2015, when the schedule for the country to receive medium-term support from the IMF should be determined, writes Kommersant.
The IMF decision, which will be made in early March, is linked to the adoption by the Ukrainian Parliament of several bills, including those limiting the country’s spending on the pension system and tightening payment discipline in the fuel and energy complex - in particular, reducing the possibility of non-payments to Naftogaz of Ukraine by energy companies . The currency crisis at the end of February will certainly reduce the Verkhovna Rada's ability to resist the adoption of this package of reforms.
In addition, the condition for the allocation of IMF funds is the amendment of the budget for 2015 - we recall that the Ukrainian government calculated it based on the exchange rate of 21,7 hryvnia/$, the Ministry of Finance explained on February 25 that it does not intend to correct the budget projections. The collapse of the hryvnia, whether the NBU wanted it or not, will facilitate the execution of the budget in its corrected form due to the nominal increase in revenues from exports in hryvnia.
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