Ukraine government wants SDR 10 bln IMF loan

The Ukrainian government will meet with IMF officials to request a new program of up to SDR 10 bln (USD 15.4 bln), first deputy PM Serhiy Arbuzov said at a Jan. 14 press conference. This amount was fixed in Ukraine’s previous IMF loan program and there should be no basis to revise the loan limit, he said. IMF representatives will visit Kyiv on Jan. 24.

Alexander Paraschiy: Arbuzov’s statement reveals he will bear responsibility for the IMF talks. Given his stated loan target, it looks as though Arbuzov is ready to deliver some concessions. As we highlighted earlier, Ukraine’s success in the IMF negotiations will be critical for current policy makers to be able to keep the hryvnia exchange rate within a safe range (i.e. devaluing by no more than 10%). So far however, there is no apparent progress regarding the two milestones for a successful IMF deal – boosts in residential gas tariffs and easing of the exchange rate.