IMF's European Department recommends continuing cooperation with Ukraine

IMF European Department Director Poul Thomsen said this at a press briefing in Washington on Wednesday, while answering a question from an Ukrinform correspondent regarding plans to continue cooperation with Ukraine.

"We can recommend a program to our board and say we are well advanced, and that would, of course, give Ukraine more resources to enlarge the policy space in dealing with this crisis," he said.

According to Thomsen, Ukraine is being "severely affected by the pandemic." "The government is taking measures [in the fight against the pandemic] that will result in a very significant increase in the fiscal deficit, and we fully support this," he said.

At the same time, Thomsen said, "fortunately, during the last several years, in the context of the IMF-supported program, Ukraine has achieved a significant measure of macroeconomic stability, the banking system stability." "Inflation has come down, external deficits have come down, fiscal deficits have come down significantly, public debt has come down, and foreign reserves are significantly higher, well over $20 billion," he said. That, in his opinion, "gives certainly Ukraine the buffers it needs to undertake the immediate policy reaction."

"Now we are in discussions with Ukraine on a new program. These discussions are well advanced, and I think they are going well," he said, adding that "there are a few issues outstanding, and I'm confident they will be overcome soon."

The IMF estimates that Ukraine's real GDP will reach -7.7% at the end of this year. At the same time, it is expected that Ukraine's economy will stabilize in 2021 and real GDP will reach 3.6%.

Reports also said that the Ukrainian government expects to receive an additional $5 billion from the IMF by the end of the year under a new credit program.

The IMF has two basic requirements for Ukraine, in particular, the adoption of the land market law, which had already been adopted, and the adoption of the law on the non-return of banks to their former owners, which has already passed the first reading and is being prepared for the second reading.

op