Ukraine needs IMF money this year, central bank says

16 January 2018

Ukraine should renew its cooperation with the IMF in 2018 with another loan tranche, NBU Deputy Governor Dmytro Sologub said in an interview with Bloomberg News published on Jan. 12. He said he doesn't expect this tranche to arrive in the first quarter as the government has yet to meet its requirements. In particular, the IMF is waiting for another natural gas price hike for households, legislation to create the High Anti-Corruption Court, and the sale of major state assets.

 

Evgeniya Akhtyrko:  We remain optimistic that Ukraine will secure at least one IMF loan tranche this year at USD 1 bln. We believe this will require some creative solutions and compromises, given that hiking gas prices is not an option ahead of the presidential vote scheduled for March 2019. Neither is the launch of a farmland market, which is highly unpopular. We expect legislation creating the anti-corruption court to be approved.

 

Ukraine will drastically need external sources of currency to keep its ForEx market under control given our forecasts for a USD 4 bln C/A deficit and USD 3.6 bln in foreign debt payments.