New program with IMF will partially cover budget deficit, unblock possibility of entering foreign borrowing markets – expert

09:53, 21.04.2020 1 min read

It is now very important for Ukraine to start a new program with the International Monetary Fund (IMF), Oleh Ustenko, the adviser to the head of state on economic issues, has said during a webinar with representatives of domestic businesses.

"The new program with the IMF will help the country partially cover the state budget deficit and will unblock the possibility of entering foreign borrowing markets," he said.

According to Ustenko, in the conditions of the global economic crisis and quarantine measures, the state faced the need to immediately seriously review the state budget, while without this the budget deficit would reach 12% of GDP.

"A high percentage of deficit in the conditions of withdrawing capital from the countries with developing markets, to which Ukraine belongs, is not subject to financing and funding. The authorities managed to reduce it to prevent the risks of rapid inflation. Thanks to the amendments to the budget, the deficit will be much smaller," the expert added.