Aslund credits Ukraine’s continued IMF funding to budget balance

2017/5/2 23:39:30

During the last period, the two most important structural conditions were that the National Bank take over the heavily undercapitalized Privatbank, and that Ukraine implement the strict filing of asset declarations of 100,000 officials. 

 

Photo: Noted economist Anders Aslund


May 1 May, 2017

 

Kyiv has been fulfilling the most important, though not all, obligations before the International Monetary Fund, Anders Aslund wrote in a column titled “Why Does the IMF Keep Funding Ukraine” published by Atlantic Council.

 

When the International Monetary Fund`s board convened on April 3, it found that the Ukrainian government had fulfilled only five out of fourteen structural reform conditions it had outlined, reads the article in Atlantic Council.

 

The reason the IMF disbursed the fourth tranche to Ukraine, even though the government had fulfilled fewer than half of the IMF`s structural reform conditions, is that Ukraine had fulfilled the macroeconomic conditions—primarily the budget balance, which is most important, according to the article.

 

Ukraine was supposed to have a budget deficit of no more than 3.7% of GDP in 2016, but it stopped at only 2.3% of GDP, over performing impressively. Inflation was slightly less than required, though the foreign deficit was somewhat larger, and the exchange rate had stabilized under tough external conditions.

 

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http://uaposition.com/latest-news/rea ... ng-ukraine-anders-aslund/

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