Minister Mylovanov: Increase in foreign exchange reserves makes Ukraine more independent of IMF

“Sufficient amount of reserves makes the Ukrainian economy more resilient and independent. In particular, independent of the IMF tranches," Minister of Economic Development, Trade and Agriculture of Ukraine Tymofiy Mylovanov posted on Facebook.

Mylovanov recalled that, according to the data of the National Bank of Ukraine, the foreign exchange reserves hit a seven-year high – $25.3 billion – at year-end 2019. Last year, the reserves increased by $4.5 billion due to bigger foreign currency inflow from exporters and international investors. At year-end 2019, the NBU's net purchase of foreign currency reached $7.9 billion, the highest figure over the past 14 years.

"At the same time, the reputation of the Ukrainian economy among investors is not perfect still. This means that the current role of the IMF program becomes more political than economic: the existence of programs convince the international and domestic investors that the government pursues responsible economic policies. I hope that this or next year we will be able to raise credit rating and investor confidence in Ukraine to a level where we no longer need IMF certification," the minister noted.

As reported, the National Bank of Ukraine believes that a new program of cooperation with the International Monetary Fund may be signed in the first quarter of 2020. The program worth $5.5 billion will be concluded for a period of three years.

Finance Minister of Ukraine Oksana Markarova said last December that Ukraine should conclude a new program with the IMF and implement it, after which it would cooperate with the Fund as a participating country without new lending.

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