Zelensky meets with IMF mission to Ukraine

Ukrainian President Zelensky assured IMF officials of
“full support for structural reforms in the economy, independence of the
National Bank and a comprehensive investigation into abuses in the banking
sector” during a Sept. 20 meeting in Kyiv, the president’s website reported the
same day. They also discussed “the ambitious agenda of reforms … aimed at
maintaining macroeconomic stability and economic growth,” also addressing “the
issue of further energy sector reforms and the situation with PrivatBank,” the
website reported.

The meeting involved Julie Kozack, the IMF’s assistant
director of the European department, and Ron van Rooden, the head of the IMF
mission to Ukraine. The Ukrainian side was also represented
by PM Oleksiy Honcharuk and Finance Minister Oksana Markarova. The IMF mission
started talks on a new program with Ukraine on Sept. 11 and is expected to
remain until Sept. 24, as was earlier announced by Honcharuk.

Alexander Paraschiy: We have no
doubt the Ukrainian parliament will be able to implement a lot of the reforms
that were held back by the previous government, including the legislation
setting up the farmland market. However, equally important for the IMF is the
situation surrounding Privatbank, as well as Ukraine’s adherence to commitments
in the natural gas sector (fee market rates for natural gas as of 2020). It is
very likely that the IMF will initiate a new EFF program for USD 5-6 bln with
Ukraine this year and will provide the initial tranche under this program in
late 2019 or early 2020. At the same time, further tranches are likely to
depend much on developments in the gas sector and Privatbank.