Friday, 30 July 2021 03:03 GMT

NBU expects progress in Ukraine's negotiations with IMF Shevchenko


(MENAFN - UkrinForm)The National Bank of Ukraine (NBU) expects further progress to be made in negotiations between Ukraine and the IMF, NBU Governor Kyrylo Shevchenko has said.

"The main assumption of the macroeconomic forecast taken into account by the NBU Board is continued cooperation with the IMF. The NBU expects further progress to be made in negotiations between Ukraine and the IMF," Shevchenko said at a briefing on July 22, an Ukrinform correspondent reports.

According to him, long delays in the performance of the agreement on cooperation with the IMF would create risks to financing the state budget deficit, especially in the coming years. This could also deteriorate inflation and exchange rate expectations, forcing the central bank to tighten its monetary policy. 

"Conversely, the performance of the IMF cooperation program would enable Ukraine to raise the planned amount of official financing, while making it cheaper to borrow on the external and domestic markets. This would also help maintain Ukraine’s international reserves at USD 29 to 31 billion in 2021-2023," Shevchenko summed up.

As Ukrinform reported, the International Monetary Fund (IMF) praised the talks with Finance Minister of Ukraine Serhiy Marchenko, but noted that more progress is needed in reforms in Ukraine. This was announced by Gerry Rice, Director of the IMF's Communications Department and IMF Spokesman, at a briefing in Washington on July 15, 2021.

On June 9, 2020, the IMF approved an 18-month Stand-By Arrangement for Ukraine, with total access of about USD 5 billion.

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