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Why IMF Has Doubts Of Ukraine

20.03.2017 The International Monetary Fund postponed the meeting to review the allocation of the next tranche to Ukraine and asked to calculate the consequences of the blockade of separate regions of Donetsk and Luhansk Oblasts (SRDLO). It could be only an excuse, not the cause.

From the recent events, noteworthy is the official announcement of the blockade. But a lot happened in the area of ​​combating corruption. When a top official stands $ 3.7 million bail (the cash of unknown origin), the foreigners are usually impressed and shocked. When there are any actions around NABU – and this body is also very closely watched by foreign observers to reduce the impact and independence of such kind of bodies, – it also causes a nervous reaction.

We really can exist without money that the IMF had to transfer to us. We are not in such a critical situation. The process which is suspended hardly instantly will impact our financial conditions. But cooperation with the IMF is important for us, because we have to give back loans. In addition, the Ministry of Finances had planned this year to reach the international market to borrow from private donors. To implement these plans, one needs positive signals from the IMF. For a foreigner who is trying to figure out what is going on here, we have a very difficult situation. It is difficult to understand the status quo: we are at war and survived the default. This ‘compilations’ does not look very nice. Therefore, for foreigners, the presence of the IMF and the continuation of its programs is a serious sign, whether it is positive or negative. Therefore, further cooperation is important, but if there is some delay – it is not critical.

Read the full article by CASE Ukraine`s  CEO Dmytro Boyarchuk [in ukrainian]