News

Delayed Loan

IMF

The IMF loan, promised previously, was expected this year. However, the National Bank of Ukraine made an official statement that the next IMF loan tranche is assumed the next year.

In the CASE Ukraine`s executive director Dmytro Boyarchuk opinion, it is due to the government, which does not want to raise the price of gas for the population.

The case is that the expert comments to the ‘Express’ outlet, if not sell natural gas to the population at a real price, Naftogaz will experience a financial hole. One will have to ‘patch’ it at the expense of the state budget, as it was before. Thus, it will slow down the growth of the economy. That is, now we repeat the same mistakes as before.

Therefore, IMF calls for a clear practice: as the purchasing markets price of gas has changed, it means the price should be changed for consumers as well.

The economist also commented on the question about consequences of the IMF`s next delaying with the granting of a loan to Ukraine. It is a serious reputation blow, he says. Several weeks ago, Ukraine placed Eurobonds at 3 USD billion. When buying these securities, international players thought the agreement with the IMF had already almost been reached. The fact is that if the Fund gives the state loans, risks are considered smaller and the country is more secure. Now the investors are extremely frustrated. So next time, attracting money on international markets will be much harder for us.

November 6, 2017