The economist explained why it is profitable to cooperate with the IMF


To sell the bonds, beneficial to officials who receive income from control of the economy. Photo: Ekonomichna Pravda

The national currency depends on the cooperation of Ukraine with the IMF.

“It is obvious that the presidential Administration is not interested in further cooperation with the Fund. I think that Ukraine will not receive funding for the IMF or the EU before the presidential election in 2019. Therefore, the national currency will remain weak,” said an analyst with the Atlantic Council and Professor at Georgetown University Anders Åslund reports “Economic truth”.

Now the volume of international reserves of Ukraine is $18 billion. However, due to the small import volume of available reserves is not enough.

“The Ukrainian government cares about their own enrichment, not the welfare of the population. In September last year, Ukraine placed Eurobonds for $3 billion under 7,375% per annum. Though the needed reforms did not happen. If Ukraine will suffer a financial crisis, it will be invoked only by Ukrainian state officials”, – said Anders Aslund.

Sale of bonds, which provides Ukraine – a strategy of avoidance of economic growth.

“This year Ukraine will be able to sell bonds for a few billion dollars. It is beneficial to the officials, because they get the profit, because they control the economy. If there are a lot of investors, top officials will lose control over the economy. Therefore their profits will decrease”, – concluded the expert.

The international monetary Fund completed the fourth review of the extended Fund of Ukraine after the adoption of the law on the anti-corruption court and bringing gas prices to market levels. Such conditions were sounded by the head of the IMF office in Ukraine Jost Longman. Among other tasks, the IMF representative noted the containment of inflation, increasing international reserves of Ukraine, the preservation policy of flexible exchange rate to maintain competitiveness of the Ukrainian economy.

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