IMF awaiting implementation of basic requirements for giving Ukraine next tranche - Alier
2011-04-27 11:21:45
The reason for the International Monetary Fund not giving Ukraine the next tranche of its loan are not only claims concerning the pension reform, but also a number of other requirements, generally consisting of four points, resident representative of the Fund in Ukraine, Max Alier told a roundtable at UKRINFORM.
Firstly, this is pension reform and bringing it into compliance with the requirements that were stated in the memorandum signed back in July and December. Secondly, this is adjustment of tariffs for gas and heating. And the third question indirectly dependent on gas prices, because the IMF agreed in principle to less intense gas prices than planned from the beginning. But the fact is that it was agreed that the revenues to be derived from the introduction of rates lower than expected would be driven by other measures and this would help raise additional funds. Thus, the third requirement is that the deficit of Naftogaz shall be no more than 3% of GDP, Alier said.
According to him, the fourth requirement is that, in respect of the National Bank of Ukraine, the demand should be withdrawn that this structure shall buy recapitalization bonds for 5 days at their nominal value.
The fact that such a requirement was prescribed in the anti-crisis law passed in 2008 and supposed to expire in late 2010, but since one can talk about the approaching end of the crisis, this requirement must be canceled rather than renewed, because it denies independence of the NBU, the IMF representative said.
According to Alier, the next tranche of IMF may reach Ukraine only after Ukraine fulfills these four requirements.
Previously, Director of the Department of Public Debt Management and International Cooperation at the Ministry of Finance of Ukraine Serhiy Makatsaria stated that the Finance Ministry expected a visit of the IMF mission from May 10 to 20.
Then in June of the next tranche is possible, he said.
As reported, in July last year, the IMF agreed to cooperate with Ukraine on a new stand-by program, which provides for the allocation of 15.6 billion U.S. dollars. Then Kyiv received the first tranche, and in December last year, after the first revision, Ukraine was allocated the second. Their total amount is 3.4 billion dollars.
The Fund's mission visited Kyiv in the first half of February this year to test the achievement of economic policy. Representatives of the IMF concluded that provision of the next tranche of 1.55 billion dollars takes additional negotiations.