IMF again lends to Ukraine. It will have to be paid back

The IMF Board of Governors approved allocating $184 million to Ukraine in a next tranche under the Extended Fund Facility. As presidential aide Valery Lytvytsky told Interfax Ukraine, the governors classified the maintenance of macroeconomic stability and prudent policy of the NBU as positive Ukraine's achievements, and amended the EFF parameters in accordance with its third revision.

It should be noted that this time the IMF Board of Governors has not only made a decision but also considered it necessary to give recommendations for the future.

Thus, the IMF pointed out that Ukraine needed to adopt an adequate budget for the year 2000, especially taking into consideration the significant payments related to foreign debt service. According to the IMF, «more decisive actions» are needed to restructure the economy, primarily in the energy and agricultural sectors, as well as in state administration, and a more active privatization policy. The Board of Governors believes that it is necessary to increase the share of the private sector in this nation's economy.

COMMENTS

Viktor NAIDIONOV, Ph.D. in economics

Ukraine's economy is stifling without money, thus loans are needed, and it's good we have them. But on the other hand, this intensifies the hopelessness of our future prospects. Even the IMF itself already points to the excessive burden of our debt service. The problem is that the government lacks a program to stimulate a transition to growth. The time when a loan gives relief to the economy should be used to create the necessary prerequisites for development. But that is not happening now, because no corresponding thought-though strategy is in place.

Oleksiy PLOTNYKOV, Ph.D. in economics

The allocated tranche is not an index of confidence in the current regime yet. The money is used for replenishment to avoid the worst consequences for Ukraine. This is specific money, aimed at supporting the state, not to let it collapse, and to relieve the anxiety of the world community. One can't but notice the realistic vision of our economic situation by the IMF. In Ukraine, no reforms are being implemented, they are substituted for by the slogans about the «invariability of the course.» As to a realistic budget, none is traditionally implemented in this country. And its implementation has never been in agreement with planned indices.