Coming days, weeks decisive for making decisions by Ukrainian authorities under IMF EFF program
The National Bank of Ukraine (NBU) pointed out the importance of making decisions required for continuation of cooperation with official creditors of the country by Ukrainian authorities.
"The need for this cooperation has recently increased due to the complication of developing countries' access to the global capital market: the cost of loans for such countries is growing amid the appreciation of the U.S. dollar, increased geopolitical tensions and the risks of deploying trade wars," the central bank said on its website.
NBU Head Yakiv Smolii during the monetary briefing in Kyiv said the matter does not concern the risk of Ukraine's default. It is important to implement structural reforms and continue cooperation with the International Monetary Fund (IMF), he said.
"Ukraine must fulfill the obligations it undertook on the reforms stipulated the fund's program for obtaining the next tranche. We hope that the tasks set will be fulfilled. We see that for two days in a row the Verkhovna Rada has been considering amendments to the law on the Higher Anti-Corruption Court. It is also necessary to create a gas market - this is the next precondition. We hope that the decision will be made and we do not change our forecasts for receiving the next tranche from the IMF and macro-financial assistance from other donors," he said.
According to NBU Deputy Head Dmytro Solohub, Ukraine this year could get $1.9 billion from the IMF, $800 million from the World Bank, and $500 million from the European Commission.
"These are the parameters of official financing, laid in our base scenario for the current year," he said.
Deputy Head of the NBU Oleh Churiy said the continuation of cooperation with the fund will also allow Ukraine to implement the borrowings in foreign markets planned for the current year.
"We believe that if Ukraine fulfills all the requirements necessary to continue cooperation with the IMF, then the markets for the country's bonds will be more favorable than now, and the Ministry of Finance will get every chance to place eurobonds necessary to cover the budget deficit," he said.
