Finance Minister: «No IMF tranche» scenario off table.



Ukrainian Finance Minister Serhiy Marchenko believes a scenario where Ukraine will not receive the next tranche of the International Monetary Fund (IMF) is unrealistic.

"We are fulfilling all our obligations. I don't see the scenario where we won't receive the IMF tranche," he told in an interview, as reported on the ministry's website.

Negotiations are now underway, Marchenko says, with the IMF and lawmakers, where the Finance Ministry explains, why a 6% deficit was laid down in the 2021 draft budget.

"Of course, further reducing budget deficit is our priority in the medium term: we plan to reduce it to 3% of GDP in 2023. But next year, we believe that a balance is needed between fiscal consolidation and instruments to stimulate economic growth," Marchenko said.

Read also Cabinet starts negotiations with IMF on 2021 state budget deficit The finance minister also said the IMF mission is expected to arrive in October or November 2020.

"At this stage, we are holding consultations with the IMF. The prime minister has recently had a conversation with the chief of the European Department. We need to go through the stage of discussing the budget for specific parameters. It's not about any requirements, we are just explaining why we have laid down such growth or such expenses. We must be honest partners. Reputation is very important. If we have undertaken obligations, we must comply with them," Marchenko said.

The minister stressed Ukraine and the IMF have a partner relationship, and during the country's specific life cycle (2020-2021), Ukraine needs such partner as the IMF. At the same time, according to Marchenko, the task of the Finance Ministry's Strategy is to turn down any IMF financing starting 2023.

Ukraine-IMF cooperation

  • The IMF's Executive Board on June 9, 2020, approved an 18-month Stand-By Arrangement for Ukraine with funding equivalent to SDR 3.6 billion (about US$5 billion), aimed at helping Ukraine overcome the consequences of the COVID-19 pandemic.
  • On June 12, Ukraine received the first disbursement of the IMF loan worth US$2.1 billion under the new 18-month cooperation program between Ukraine and the Fund.
  • Ukrainian Prime Minister Denys Shmyhal on September 21 held an online meeting with Director of the International Monetary Fund's European Department Alfred Kammer to discuss cooperation with the Fund, Ukraine's key lender.
  • The Finance Ministry plans to get the second tranche under the new program of cooperation between Ukraine and the IMF by late 2020.

Author: UNIAN

Related news

Industrial output slowing down in annual terms

To the previous month, September's industrial output decreased by 1.1%, excluding the adjustment for the calendar days effect, and increased by 4.5% – with such adjustment.

Ukraine fulfills all conditions for second IMF tranche – Zelensky.

According to Zelensky, the domestic economy is in such a state that it simply cannot cope without international loans.

Facing another lockdown: What should be done not to finish off economy while fighting corona.

President Volodymyr Zelensky has admitted that reintroducing a strict quarantine is possible due to the increase in the COVID-19 incidence. Businesses and experts fearfully await repetition of the spring scenario, which delivered a heavy blow to t...

Decline in industrial production in Ukraine slows to 4.

Industrial production in Ukraine in September 2020 compared to September 2019 decreased by 4.4%, while in August the decline was 5.3%, in July 4.2%, in June 5.6%, May 12.2%, April 16.2%, March 7.7%, the State Statistics Service has reported.

Hryvnia set at UAH 28.27 to U.S. dollar on Oct 23

The national currency against the dollar remained at the level of the previous day.

NBU lowers grain harvest forecast to 67M tonnes

The National Bank of Ukraine (NBU) has cut its forecast for the grain harvest in 2020 from 72 million tonnes to 67 million tonnes, but it does not provide for an imbalance in the foreign exchange market due to a decrease in revenue from grain expo...

Surplus of current account of balance of payments in 2020 will be 2.

The National Bank of Ukraine (NBU) has downgraded the forecast for the consolidated account of the balance of payments in 2020 from a surplus of 4.4% of GDP (in the July forecast) to a surplus of 2.9% of GDP, the regulator's website said.

Economic Development Ministry: Dynamics of exports of goods improved.

For 8 months of 2020, Ukraine’s exports of goods totalled $30.8 billion, down 6.6% compared to the corresponding period of 2019. Over the first seven months of the year, the decline in exports reached 7.4%.

Chief banker: Delay in fulfillment of obligations to IMF can affect economic recovery.

An effective dialogue with international partners is the key to maintaining macrofinancial stability.

1 4

NBU expects to receive IMF tranche at year-end – Shevchenko.

The National Bank of Ukraine (NBU) expects to receive a tranche from the International Monetary Fund (IMF) at the end of 2020.

By continuing to browse World News (UAZMI), you acknowledge that you have read the Terms of Use and agree to the use of cookies