Monday
12 october 2009
19:55
IMF has good reasons not to disburse its final tranche to Ukraine, expert says
Ukraine has failed to meet all its commitments with regard to the International Monetary Fund. The main one was to raise the price of natural gas for Ukrainians to at least its self-cost. The cabinet promised to up gas tariffs as of Sept. 1, but failed to do this, Oleksandr Zholud of the International Center for Perspictive Research told ZIK Oct. 12. -
As Ukraine formally violated its deal with the IMF, the fund can react formally, too – and deny the final tranche, the expert says.
At the same time, the IMF is fully aware of the presidential race going on in Ukraine which poses many problems for the cabinet, one of themprimarily in a sense of making unpopular decisions as they may curb its approval rating.
Despite Ukraine’s inability to meet the IMF guidelines, there is a chance that Ukraine might get the final tranche, the expert sums up.
Comment by ZIK
An IMF team has arrived in Ukraine Oct. 12. Its experts will evaluate Ukraine’s compliance with the July 23, 2009 Memorandum on economic and financial policy with Ukraine.
In November, 2008, the IMF endorsed a 2-year crediting program for Ukraine totaling $16.4 billion, disbursing the first $4.5 bln tranche.
On May 12, 2009, Ukraine received the second tranche amounting to $2.8 bln, then the third tranch of $3.3 bln. The fourth tranche of $3.8 bln is expected to be released by the end of 2009.
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