18:30 06.06.2018

Resignation of finance minister could lead to delay in IMF tranche - bankers

2 min read
Resignation of finance minister could lead to delay in IMF tranche - bankers

The resignation of Ukrainian Finance Minister Oleksandr Danyliuk could lead to a delay in the tranche of the International Monetary Fund (IMF), the impact on the hryvnia exchange rate will be neutral, the bankers interviewed by Interfax-Ukraine have stated.

"In the short term, this dismissal should not affect the hryvnia exchange rate. At the same time, it might affect the medium term, since the appointment of a new minister and the creation of a new team by him may take some time, as this entails the creation of a new financial programs and visions on certain processes in the country's financial management, which, in turn, could delay the issue of a tranche under the IMF program," Danylo Lysenko, an expert in the department for the sale of treasury products at OTP Bank, said.

He added currently there are good terms of trade for Ukraine, but the continuation of Ukraine's cooperation with the IMF reduces the cost of debt borrowings for the government and helps insure against the deterioration of trade conditions.

Viacheslav Yutkin, the former first deputy chairman of Prominvestbank, adheres to a similar point of view.

"In the short term, this decision [on the possible resignation of the minister of finance] will not affect the hryvnia rate. The hryvnia exchange rate has been regulated by the market for a long time and, fortunately, depends more on other factors. The main factors include conjuncture in the world markets, to which Ukraine exports raw materials and products, peak payments on external debt in the current and subsequent two years, continued cooperation with the IMF, maintaining the level of forex reserves, and foreign investments," the expert said.

At the same time, he noted that the dismissal of Danyliuk is a serious image loss of Ukraine and a negative signal for both the IMF and foreign investors.

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