The IMF endorsed the Bank on the consequences of the blockade on Donbass

The international monetary Fund (IMF) approved and have the basis specified in connection with the blockade of Donbass macroeconomic forecasts, which gave the national Bank of Ukraine (NBU). This was announced by Director of Department of monetary policy and economic analysis of the NBU Sergey Nikolaichuk in the air “Radio.News”.

“In fact, we provided the experts of the Foundation their estimates of the macroeconomic effects of the blockade. We have provided evaluation of the new macroeconomic forecast, which were then published. And in fact, we discussed these projections with the Fund’s experts and working level they agreed with our reasoning … and took over the macroeconomic framework of our numbers,” said Nikolaichuk.

As reported, on 21 March , the NBU has lowered economic forecasts due to the blockade in the Donbass. In particular, the national Bank worsened the GDP growth forecast for 2017. “However, the impact of the blockade on the exchange rate of the hryvnia will be limited. The deterioration in the balance of payments in the first place will be displayed on the net purchase of currency in the market to replenish the reserves,” – said the NBU.

As you know, the issue of Ukraine, appointed Russ tothe discretion of March 20, disappeared from the agenda of the meetings of the Board of Directors of the IMF. Now the agenda is painted to 31 March, and Ukraine in it. Prime Minister Volodymyr Groysman noted that the transfer 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.

To resume the national Bank of Ukraine (NBU) and the Ministry of Finance had to update forecasts with regard to the effect of the trade embargo.

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.