Tranche of the IMF in numbers: for every Ukrainian is 230 dollars of debt

Ukraine will have until the end of the year $4.4 billion loan from the IMF, if the conditions of a new Memorandum and it will continue to demonstrate the results of the reforms. This year’s first $1 billion, the allocation of which we, the Board of Directors of the IMF approved on April 3, needs to do the other day, the leadership of the national Bank. “Today,” recalled the history of cooperation with the IMF, since 1994. It turned out that 85% of the loans from the Fund, the government scored in the last 10 years and bring them back will be difficult — not enough funds.

WHY BORROWED. The last four-year bailout programme, the IMF provides Ukraine in 2015-2018 $17.5 billion, of which, with the latest tranche allocated almost half or $8.7 billion Revised once the Memorandum of cooperation contains more than 10 beacons or conditions that we have to do and then you will get this year another $3.4 billion in equal installments on a quarterly basis.

The main “lighthouses” is the reform of the pensions (yet without raising the retirement age. — Ed.) the privatization of the largest state objects (over 30 companies), the introduction of a land market, the fight against corruption. “I should get $4.4 billion in 2017, more than $1 billion in the quarter, says economist Ivan Nikitchenko. — According to the latest tranche we had been delayed, so the next $1 billion needs to obtain in the second quarter. The IMF tranches are intended for alignment of balance of payments support gold and currency reserves (GCR) of the country. The country is forced to cover the shortage of hard currency foreign loans. As well as during the crisis, private investors are afraid to lend or willing to give at very high interest rates (10% and more) remains the IMF, which rates approximately three times lower”.

AS GIVE UP. The President Ukranalittsentra Alexander Ohrimenko has estimated that until Ukraine takes over at the IMF in debt than calculated under the previous loans. “Just given the fact that we have already given Ukraine more than $11 billion in budget not enough without new borrowing to pay off old, and this applies not only to the IMF and other financial institutions, explains Okhrimenko. — $1 billion is important in order to go other loans and aid: 600 million euros from the EU, $1 billion from the World Bank plus the money from the United States and other countries totaling $3.5 billion That will help gradually, over 5-10 years, to pay off debt, but will need another restructuring after 2019”.

The head of the Opposition government, Borys Kolesnikov does not agree: “the Continuous work of the IMF is a red light for investors, not green. If we spent years borrowing money and are unable to “jump” to the currency of the needle, means no investment in Ukraine will not come.” It is necessary to revive the economy, and not to take kreita. By the way, each of us already owes the IMF 7300 UAH.