Current analysis

Credit in advance: what economists think of credit allocated by the IMF

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Senior Economist of CASE Ukraine Volodymyr Dubrovsky has commented to RBC Ukraine on granting to Ukraine the next loan of $ 1 billion:

‘Providing tranche affects the stabilization of the Ukrainian currency. It reassures us, that – conditionally – tomorrow we will not experience landslide inflation. This is an important signal to the international financial institutions, which will further inspire lending and investing in various Ukrainian projects, and for private investors.

In addition, Ukraine was able to overcome a negative image that was formed over the years of cooperation with the IMF starting with President Leonid Kuchma. We have received IMF`s loans, but the Program`s requirements were not met. Despite the government crisis and change of prime minister, the country now is managing to maintain continuity and meet the conditions of lending.

It is also important to clarify that the tranche was reduced from $ 1.7 billion to $ 1 billion not so much because of any problems, but because the country does not need such a large tranche of now, this is not an emergency situation.’

Read the full article on RBC Ukraine [in ukrainian]

September 16, 2016