The IMF’s new Ukraine plans to refuse to Fund loans

After the present program, Ukraine plans to radically change the format of cooperation with IMF

The Ministry of Finance of Ukraine has developed a strategy till 2023. The main objective of the strategy is declared the getting rid of direct financing of the International monetary Fund (IMF). This was reported on the website of the Cabinet of Ministers with reference to the author of the column of the Minister of Finance Sergey Marchenko.

“The negative impact of the pandemic on the economy of Ukraine is a challenge that requires a system of strong solutions. Response of the Ministry of Finance – Strategy action of the Agency until 2023. We have developed and presented the project for public discussion. <…> A strategic objective to eliminate direct funding of the IMF”, – said Marchenko.

See also:
The IMF mission will arrive in Ukraine in the summer: I will check

According to him, for Ukraine it is necessary to strengthen self-sufficiency, to be able to borrow on domestic and foreign capital markets on favorable terms.

“Sure, until 2022, Ukraine will complete the current program with the Fund. I hope the time will come to “zero” in the column “IMF loans” in the budget. Further, by 2023, will choose a new format of cooperation. See our country is not a recipient of resources, and the donor experience and technical assistance”, – explained the Director and added that Ukraine is important to reduce the ratio of government debt to GDP to 55%.

He also noted that the document in General we are talking about five areas. Among them:

  • effective budget expenditures;
  • tax stimulation of economy;
  • prudent financial and debt policy;
  • quality frames and digitalization;
  • unshadowing.

We will remind, the total volume of new 18-month IMF program for Ukraine is about $ 5 billion. They will be provided in four tranches. The first tranche, which has already received Kiev – $ 2.1 billion – fully directed to the state budget.

Previously adviser to the head of the Office of the President of Ukraine Igor Umansky explained that in a crisis, cooperation with the IMF Ukraine was necessary: