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IMF mission makes progress in negotiations with Ukraine on stabilization legislation

Source : 112 Ukraine

IMF Resident Representative in Ukraine Ljungman announces continue of discussions in the coming days
14:27, 29 February 2020

Open source

The International Monetary Fund informed it had made good progress in talks with the Ukrainian authorities and that the discussions would continue in the coming days, Reuters reports.

The IMF has given conditional approval for a new loan programmer’s to Ukraine worth $5.5 billion but its disbursement depends on Kyiv’s performance on reforms. The IMF also wants parliament to pass a special law on banking.

“The IMF staff team that visited Kyiv made very good progress in discussions on legislation to support growth and ensure stability, and discussions will continue in the coming days,” the statement said.

Related: Who is D-student by IMF standards: Poland or Ukraine?

Over the next 20 years, there will be three scenarios of Ukraine's possible development - complete reform, partial reform and rollback of reforms. This forecast was made by Permanent Representative of the International Monetary Fund (IMF) in Ukraine Gosta Ljungman, Interfax reports.

The first scenario of Ukraine's development envisages complete reforming: overcoming the backwardness of the economy, establishing the land sale market without restrictions, GDP growth by 6% annually. This will allow the population to become richer by 60% in 20 years and reach the present level of Poland by 2038.

The second option outlines partial reform: maintaining the gap in the judiciary, compared to the EU, the land sale market with restrictions, a 4% growth. In this case, the population will be 20% richer.

The third scenario is the rollback of reforms: the absence of a land sale market, growth at a rate of up to 1.5% per year. In this situation, the population will be 20% poorer in 20 years than it is today.

According to Ljungman, the scenario of Ukraine's current pace of reform processes is somewhere between the second and the third options.

Related: Ukraine should treat coronavirus with IMF

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