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IMF forces poverty upon Ukraine, - MP

At the same time, Ukraine can't go without IMF tranches
23:27, 18 September 2018

112 Agency

International Monetary Fund forces poverty upon Ukraine. Olena Babak, Ukraine’s MP from Samopomich faction said that on air of The Pulse talk-show on the 112 Ukraine TV channel.

“Today we’ve heard Mr. Kobolev (the head of Naftogaz Ukraine), who spoke of a clear agreement on gas price surge. I believe, we have to be honest with each other and admit – IMF forces poverty upon Ukraine. The system is being created when people become poor,” Babak noted.

At that when the TV-host asked whether Ukraine can go without IMF tranches, Babak replied negatively.

As it was reported earlier, the Ukrainian government has in principle agreed with IMF upon gradual gas price enhancement to the level of import equivalence before 2020.

Related: IMF mission in Kyiv saw ‘performance’ reforms with zero-sum outcome

Reportedly, on Thursday, September 6, the IMF mission began in Ukraine. It will last will September 19. Volodymyr Groysman, the Prime Minister of Ukraine, promised to report on the results of the talks with the representatives in two weeks.

On August 31, Ukraine transferred $160,3 million to the International Monetary Fund on account of the principal debt repayment. The payment of 114,3 million SDR (Special drawing rights) of around $160 million was transferred through stand by arrangement program as of April 2014. In total, Ukraine transferred $605,6 million to the fund in August.

The IMF Board of Directors approved the allocation of $17,5 billion for Ukraine in March 2015 by the EFF (Extended Fund Facility) four-year program instead of the stand-by program.

The stand-by program was replaced by the “scheme of extended funding” due to the long-term need of Ukraine’s pay balance.

Ukraine received the first $5 billion tranche under this program in March of 2015, the second one – $1,7 billion in August of 2015, the third one - $1 billion in September of 2016, and the fourth one - $1 billion in April of 2017.

The cumulative government debt of Ukraine shrank by 0.7% (or $590 million) in July 2018 compared to the previous month and reached $75.71 billion (as of 31 July). 

Related: Ukrainian government is trying to make the IMF and the United States shell out

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