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.
