France ready to help Ukraine cover budget deficit

The press office of the Cabinet of Ministers of Ukraine, citing Prime Minister Yulia Tymoshenko, said that France is ready to provide financial support to Ukraine to cover its planned budget deficit, after it agrees on terms with the International Monetary Fund to resume its USD 16.4 bln loan program. According to Tymoshenko, European Union Commission Head Jose Manuel-Barroso, in a letter, said that all key European Union countries were ready to collaborate with Ukraine following the conclusion of a deal with the IMF. Andrii Parkhomenko: The news states that the European countries are ready to provide financing to cover the deficit built into the approved state budget (UAH 28.1 bln). However, the current budget projects revenues based on real GDP growth of 0.4% yoy, a decrease in exports of 3.8% yoy and drop in imports of 9.5% yoy in 2009. We forecast that the actual deficit in 2009 could reach UAH 62 bln, closer to consensus forecasts, where real GDP will decline 7.0% yoy, exports by 25% yoy and imports by 33% yoy.