IMF Mission Releases Preliminary Findings

By the end of this week the IMF mission will make its final conclusions about whether resuming the Extended Financing Facility Program for Ukraine is appropriate. After meeting two hours with Viktor Yushchenko, answering the question what should the Ukrainian government concentrate on to ensure EFF resumption, Julian Berengaut, leader of the IMF mission, noted that among the main directions are the arrangement of the 2001 budget and also the budget reform that is now at its initial stage. Other “important components,” as Interfax Ukrayina quoted him, are carrying out the privatization program and guaranteeing of “the bank system’s healthy status.” At the same time, the renewal of the financing by the EFF program “will depend on how quick we (the government and the IMF mission — Ed.) will be able to create a package of political measures.” Simultaneously, according to Mr. Berengaut, at present it is “too early” to talk about the amount of money that can be released to Ukraine on the resumption of the EFF program.

On his part, Mr. Yushchenko claimed, “We are close in estimating the macroeconomic aims and parameters, in particular, of the 2001 budget.” He also expressed the hope that during the next week of negotiations the sides will find “a complete mutual understanding” on issues of carrying out the 2001 budget and also on other issues which “are not put so dramatically.” The Premier emphasized that the course of the current negotiations “makes it possible to look at the EFF program resumption with complete optimism.”