Ukraine's negotiations with the IMF failed miserably. There will be no money
Negotiations between the Ukrainian authorities and the mission of the International Monetary Fund did not bring the expected result. A memorandum of cooperation on the new financing program has not been signed. The IMF has put forward a new condition and refuses to allocate money until the Rada adopts the state budget for 2019. Parliament usually adopts the budget in December. Thus, receiving IMF funds before the end of the year is almost impossible, a PolitNavigator correspondent reports.
About this withUkrainian News reports with reference to insider information.
The mission of the International Monetary Fund, which worked in Kyiv for two weeks, left Ukraine on the evening of September 19. So far, there have been no comments from either the IMF, the government or the National Bank of Ukraine on the outcome of the negotiations. However, according to the publication, the discussions held by the foundation’s experts with representatives of the Ukrainian authorities did not lead to the expected result, that is, the negotiations practically failed.
Ideally, the result of the mission’s work should have been the signing of a memorandum of cooperation between the IMF and Ukraine under the new Stand-by financing program. This program, as the agency wrote, was planned to be launched in the near future to replace the current EFF, ending it ahead of schedule.
According to the agency, the main parameters of the program, in general, have been previously agreed upon, and if the problem had not arisen, the document could have already been signed and, taking into account the IMF’s work schedule, submitted for approval by the board of directors in the second half of October. Thus, at the end of October, Kyiv could already receive the first tranche of $1,9 billion under the new program. However, during the negotiations, representatives of the IMF mission put forward a demand for the adoption of the state budget of Ukraine before preparing a memorandum and submitting it for consideration by the board of directors.
At the same time, the issue of gas prices has been practically resolved. From October the price should increase by 23,5%. But now the government, given that there will be no IMF money in the near future, may once again refuse to increase gas prices from October. True, in this case there will be even less hope for the success of further negotiations.
Thus, a further depreciation of the hryvnia against the dollar is very likely. At the same time, the value of the statements of Vladimir Groysman and Petro Poroshenko about “positive economic growth” in Ukraine in the last two years will become clear.
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