EFF crediting of Ukraine may be resumed following the conclusions drawn by the International Monetary Fund mission expected to arrive in Ukraine in the second half of June, i.e., if the Ukrainian government makes “specific decisions” about a number of trends in the economic reforms within a few weeks and manages to achieve “sufficient progress” in their implementation, John Odling-Smee, Director of the IMF’s European Second Department, said last Wednesday after final talks with the Ukrainian government, Interfax- Ukraine reports.
However, he stressed, “I said that the mission results might lead to the resumption of EFF crediting, but this does not necessarily mean it will be so.” According to him, no final decision has been made in this connection. At the same time, in his opinion, things in Ukraine are going in such a way that one can admit the possibility of EFF resumption.
Pointing out “good progress” the Ukrainian government has achieved in some reforms, the IMF representative stressed that Ukraine still has much work in a number of other directions of economic transformations. Asked whether the IMF is prepared to grant concessions to Ukraine as far as fulfillment of some conditions for EFF resumption is concerned, Mr. Odling-Smee said the Fund was ready to display a “certain flexibility” in its approaches to this issue, but he personally was not prepared to discuss this at present.
Meanwhile, the Ukrainian side assesses the results of the IMF delegation visit to Kyiv much more optimistically. First Vice Premier Yuri Yekhanurov said at the briefing after the negotiations that, if the situation develops favorably, Ukraine can expect EFF credits to resume in late July.
COMMENT
Serhiy OKSANYCH, chairman, Association of Investment Business of Ukraine:
“In its dealings with Ukraine, the IMF has lately switched over from monitoring certain macroeconomic parameters and indicators to analyzing concrete managerial decisions. This looks somewhat objectionable and provokes a certain resistance in our government. But, on the other hand, this kind of approach can hardly be called unjustifiable: they pay, so they call the tune. Still, the Fund could be more flexible. So Mr. Odling-Smee’s promise inspires hope. I am almost sure the IMF will take a certain pause to save face and then resume funding for Ukraine. For it is clear the IMF does not face the dilemma whether to support Ukraine or let it sink. Should the latter be chosen, this will inevitably push this country into Russia’s embrace, which is by no means in the interests of the world community.”
