“This challenge”: Groisman explained the transfer of the IMF tranche for Ukraine

The transfer of the allocation of Ukraine tranche of the International monetary Fund (IMF) caused by the change of the economic situation in the country due to the blockade on Donbass and became a new challenge for the government. This was stated by Prime Minister of Ukraine Volodymyr Groysman, the TV channel “Ukraine”.

“[The IMF has postponed consideration of the question of Ukraine] in order to evaluate and look at what the macroeconomic indicators will be in 2017. I emphasize that this is another challenge for me as Prime Minister to deal with it,” said Groisman.

The Prime Minister reminded that, except for losses directly from the blockade, Ukraine at the Donbass lost businesses that pay taxes in Ukraine, as well as access to Ukrainian mineral resources on the uncontrolled territory. In this regard, the country will have to revise its forecast for economic growth, said the Prime Minister.

“This is another challenge for all of us, and I do not change the brand of his position: the blockade, initiated by a few hundred people – it was not in the interests of Ukraine, and was in the interests of Russia”, – said Groisman.

We will remind, inyesterday the issue of Ukraine, is scheduled for consideration on March 20, disappeared from the agenda of the meetings of the Board of Directors of the IMF. Now the agenda is painted to 24 March and Ukraine in it.

The Minister of Finance of Ukraine Alexander danyluk explained it by technical reasons. “The postponement was due solely to the need to clarify calculations of the economic consequences of the measures taken by Ukraine in response to the blockade, the seizure of Ukrainian enterprises in uncontrolled territories, and also in connection with the recognition by the Russian side of the documents issued in these areas”, — said danyluk. According to him, the consultations with the IMF will be completed in a short time.

Today, the national Bank of Ukraine (NBU) gathers an extraordinary meeting of the monetary policy Committee to update the forecasts with regard to the effect of the trade embargo. The decision of the IMF, the NBU reserved comment on: “Ukraine is in the cooperation program with the IMF. … Recent course of events requires further study of their potential impact on the economy and incorporating them into macroeconomic projections of the programme of cooperation with the Fund”.

As reported, last week Ukraine agreed on the final version of the Memorandum of cooperation with the IMF. As a result, the government expects to receive next loan tranche of one billion dollars. Earlier danyluk explained that the government will publish the text of the updated Memorandum of cooperation after the text manifests the Foundation itself. Groisman, in turn, claimed that surprises the document will not.

Ukraine and the IMF in March 2015 signed a Memorandum of economic and financial policies which the country should undertake in the framework of the extended Fund (EFF).

The entire program provided Ukraine with about $ 17 billion of which have already been allocated 7,7 billion dollars.

So, in September 2016 after a delay of a year, the IMF approved the granting Ukraine the third tranche in the amount of one billion dollars.