IMF mission to remain in Kyiv until Feb. 11

IMF mission to remain in Kyiv until Feb. 11



10 лютого 2015 года
Конкорд Капитал

The IMF mission to Ukraine will remain in Kyiv until Feb. 11, reported the Interfax news agency on Feb. 9, citing an anonymous source. The negotiations are very tough with energy rates (for households) and fiscal consolidation being among the key issues, the source said. On Feb. 6, the Finance Ministry reported that Ukraine’s president, prime minister, parliamentary speaker, finance minister, the central bank head and leaders of parliamentary factions (MPs) gathered for a meeting to discuss the new IMF program. The IMF mission arrived in Kyiv on Jan. 12 and was expected initially to finalize its work by Jan. 30.



Alexander Paraschiy: That authorities started discussing the IMF program with MPs means that the final stage of negotiations is very close. Substantial budget cuts are inevitable and the Cabinet needs to rally strong political support to get the revised budget passed in parliament. Meanwhile, it’s apparent that international finance institutions do not have confidence in the Ukrainian authorities and are not inclined to give any advances. In this respect, the IMF is likely to explicitly demand concrete steps on fiscal consolidation prior to any further funding. Given that the 2015 budget presumed a spending plan revision by Feb. 15, we expect IMF negotiations to wrap up this week, though not necessarily by Feb. 11.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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