Does Ukraine No Longer Need Western Loans?

The Ukrainian government’s appetite for new IMF loans at any price is far from justified, believes presidential adviser and NBU council head Anatoly Halchynsky. He maintains Ukraine should start talks about shifting its relations with IMF to the plane of non- credit relations. As Mr. Halchynsky sees it, the current economic situation in Ukraine is fundamentally different from what it was in 1995-1998 when the country posted a negative balance of payments, which had to be redressed using loans. Ukraine has posted a positive balance of payments for three consecutive years: $1658 million in 1999, $1481 million in 2000, and $1390 million in 2001, the NBU council chairman told Interfax-Ukraine. “This creates the conditions for a new model of relations with the IMF. I think it’s time we changed the tune,” Mr. Halchynsky said.