Mohammed Shadman-Valavi, head of the IMF mission, declared on July 31 that Ukraine will be granted a $2.2 billion EEF loan. Minister of the Economy Vasyl Rohovy expects the mission to recommend the IMF Board to grant the loan in early September.
Bulletins released by government-affiliated news agencies sounded like triumphant communiques. An EFF-backed stability adjustment reforms program, coordinated between the parties in advance, is supposed to facilitate "economic growth and consolidation of the latest attainments in stabilization." The IMF mission approved all measures being taken by the Cabinet, ranging from tax structure rationalization to transparent privatization procedures.
Today's media coverage of the IMF mission strongly reminds one of previous propaganda campaigns. In many respects it is aimed at concealing the actual situation from the public eye. Thus, IMF requirements toward the Ukrainian government were never published and the IMF memorandum, according to Vice Premier Serhiy Tyhypko, will become public knowledge only when approved by the IMF Board. In other words, no one is sure how much Ukraine will have to pay for this credit.
In fact, there are still problems to be solved between Ukraine and the Fund. People's Deputy Serhiy Teriokhyn believes that IMF wants a "letter of commitment" from Speaker Tkachenko to the effect that he will not oppose the President's edicts.
Serhiy Manokha, deputy head of the treasury bank, Creditanstalt Ukraine, told Interfax Ukraine that a number of issues remain open: (a) market operators are still not sure about the parameters which Ukraine must adhere to receive the loan; (b) when granted an EFF, its first tranche will not arrive before September, and the Finance Ministry must make considerable payments on domestic and foreign debts before that date.






