Cooperation with IMF to Help Ukraine in Crisis Overcoming
OREANDA-NEWS. July 09, 2010. The cooperation programme with the IMF will help Ukraine to minimize the impact of a potential second wave of the global financial and economic crisis and effectively carry out necessary reforms in the state. Prime Minister of Ukraine Mykola Azarov said this during the meeting of the CMU.
He has reminded that last Saturday negotiations with the International Monetary Fund mission on resuming the cooperation with Ukraine under the stand-by agreement ended.
According to the Head of the Government, the cooperation program with the IMF will open for Ukraine access to lending resources from other international financial institutions. Mykola Azarov noted that the domestic market is beginning to surmount the deep crisis, so now, it is very important to speed up the economy, but Ukraine doesn’t possess enough resources: "Such resources have the IMF, World Bank, European Investment Bank, EBRD". According to preliminary estimation, it is approximately 30 billion dollars per year. The programme of cooperation with the IMF is the path to these funds and therefore to international investment funds. If we receive such an access, Ukraine will overcome the protracted global recession stage normally.
The Prime Minister stressed that the Ukrainian economy will get so-called "financial umbrella" under which we will modernize Ukrainian economic potential and implement necessary reforms.
The Head of the Government noted that the previous programme, through which the previous Government received a loan worth about 20 billion dollars, wasn’t carried out "So in late 2009, the International Monetary Fund suspended the cooperation with Ukraine", said Mykola Azarov.
But he stressed that as a result it was very difficult to negotiate with the IMF, as the current Government faced a huge lack of confidence in the Ukrainian authorities: "Our Government has no right to negotiate with the IMF irresponsibly, on the principle of the predecessors, promising more, doing less. We were obliged to return confidence in the Ukrainian authorities and secure our people with the external assistance against possible financial and economic shocks".
Mykola Azarov has said that the Ukrainian authorities’ duty consists in making everything possible and impossible to prevent or minimize the potential impact of a second wave of the global financial and economic crisis: "Our Government is not going to turn a blind eye to the obvious risks. We must prepare the country to create the necessary reserves, concentrate financial resources", noted the Head of the Government.
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