IMF links loan amount to Ukraine with reforms

KYIV, December 7 /Ukrinform/. It is premature to speak about the amount of a loan, which the International Monetary Fund could extend to Ukraine.

IMF Resident Representative in Ukraine Jerome Vacher has said about this in an interview to Zerkalo Nedeli, commenting on the amount of USD 4 billion aired in Ukraine.

“Before adjustment of a concrete amount, an agreement should be reached on the policy, which would remove disproportions and stimulated growth, representing the basis for the financing program, which could be necessary,” Vacher said.

According to him, the matter concerns raising of the exchange rate flexibility in combination with the policy for strengthening of the financial sector, ambitious efforts for the budget consolidation and reduction of large quasi-fiscal losses in the energy sector. At the same time, the banker called the recommendation about the flexible rate as the one, which is far from being new.

“This, in particular, would help leveling external shocks, arising from instability of export prices and foreign demand for Ukrainian products, as well as raising gold and currency reserves of the country and preservation of internal producers' competitiveness. In the average-term perspective, we consider that targeting of inflation is a proper basis for the money and credit policy of Ukraine, and preparation for its introduction should be speeded up,” Vacher said.

The already known list of the IMF recommendations was added by another, namely “all -round structural reforms for improvement of the business climate and stimulation of the economy growth.”