IMF is closely monitoring Privatbank situation, Rozhkova says

National Bank Deputy Governor Kateryna Rozhkova
acknowledged this weekend the uncertainty surrounding Privatbank’s future has
affected Ukraine’s talks with the IMF,  but stressed that has not closed
the door for a loan tranche. “The dialogue is ongoing and will go on further,”
she wrote in her blog on Oct. 13, adding that the talks will continue soon in
Washington during the annual IMF and World Bank meeting this week. Two days
earlier, Reuters published Rozhkova’s comment that “the discussions with the IMF
for the next funding tranche are frozen, stalled because of the issue of
Privatbank.”

Recall, the Kyiv Economic Court has scheduled for
Oct. 17 arguments in the case of the complaint of
former Privatbank shareholder Ihor Kolomoisky against the nationalization of
Privatbank. Kolomoisky is requesting the court to cancel the sales-purchase
agreement between former shareholders and the Finance Ministry. The court may announce
its ruling on the case the same day.

Alexander Paraschiy: As we
commented before, the court’s ruling in favor of Kolomoisky on or about Oct. 17
will be harmful for Ukraine’s talks with the IMF. That could be especially
painful taking into account that Ukraine’s delegation will be in active talks
with the fund this week in Washington. At the same time, we believe that if the
ruling is postponed, this will postpone the negotiations as well.

Therefore, only a ruling in favor of the state
position in its dispute with Kolomoisky will enable Ukraine to get a chance for
a soon IMF tranche this year. We continue to await the ruling with caution.