Tuesday, March 30, 2010

Iryna Akimova: IMF mission positive about cooperation with newly formed Ukrainian government

Describing cooperation with the IMF, Iryna Akimova stressed that the situation is complicated because the previous Government undertook a number of commitments, most of which remained unfulfilled. In particular, the issues related to reforming gas sector through raising gas prices to economic levels (by 20% quarterly) and submitting realistic, balanced 2010 budget to the Parliament.

At the same time three tranches totaling $10.6 billion were aimed mostly at fulfilling former PM’s election promises.

However, Iryna Akimova said that the IMF mission appreciates stabilization of the political situation in Ukraine and consolidation of all branches of power, and considers newly formed Cabinet of Ministers as a reliable partner in negotiations.

The International Monetary Fund is ready to discuss providing support to economic reforms in Ukraine and comprehensive assistance to their implementation through preparation of the biennium programs.

There are consultations held now in the Cabinet of Ministers of Ukraine, ministries, departments and the National Bank on the 2010 draft budget, which include such key issues as the budget deficit and macroeconomic indicators of socio-economic development of Ukraine. These are foundations for the basic financial document of the country.

"During discussions with the IMF mission experts we have agreed that Ukraine has to protect the poorest segments of society. It can be done through implementation of the law on social standards", said Iryna Akimova.

She also said that conducting consultations with the IMF on the 2010 budget indices and achieving consensus on this issue will renew cooperation between Ukraine, the EU and the World Bank. This will allow receiving $2 billion in the nearest future that will be aimed at reforming Ukraine's economy.