New IMF loan might be delayed due to change of government in Ukraine, - Oxford Economics

Source : 112 Ukraine

Analysts also pointed out the risk of a possible weakening of the National Bank.independence
15:00, 8 March 2020

Open source

A change of government in Ukraine could be the reason for delay of the new IMF loan program. This opinion was expressed by economic analysts from Oxford Economics.

“The latest government reshuffle by Zelensky increases the risk of failure of reforms, both in terms of macroeconomic stabilization and institutional and anti-corruption reforms. This is likely to significantly delay negotiations with the IMF,” economists say.

They also pointed out the risk of a possible weakening of the National Bank independence.

Oxford Economics predicts a change in the composition of the NBU board in the coming weeks.

Related: IMF said it made progress in negotiations with Ukraine

A new $ 5.5 billion loan was delayed for several months, partly due to concerns about the oligarchs influence on the government, Bloomberg said.

The article notes that among investors there are concerns about the resignation of ministers which they liked, as well as the prosecutor general, who is supported by Western donors and local activists.

The fear is that in connection with the appointment of new members of government, the influence of the class of billionaires may again increase. In addition, talks about the relationship between Zelensky and former business partner Igor Kolomoisky continue, despite the fact that both denied this many times.

Related: Ukraine's new government to continue cooperation with IMF, - PM

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