Ukraine: Option of default off the table – Zelensky’s spox

21:20, 27 March 2020

The president hopes that MPs at their upcoming extraordinary meeting will vote for the required legislative initiatives to support businesses, vulnerable segments of the population, as well as highly important reforms in the banking and agricultural sectors.

Ukrainian authorities are not considering the option of default, while counting on an increase in potential funding from the International Monetary Fund, Ukrainian President Volodymyr Zelensky’s press secretary Yulia Mendel told UNIAN.

“For Ukraine, cooperation with the IMF is now extremely important. We are very pleased that we were able to agree on the increase in potential funding,” Mendel said, adding that besides the assistance program discussed earlier, the IMF is mulling support for Ukraine in the fight against the spread of COVID-19 coronavirus. “Ukraine would be recovering from default too hard, and for too long. The authorities will not risk lives of Ukrainians, and therefore they are not considering the option of default,” said Mendel.

Zelensky hopes the legislators will act responsibly and support at an upcoming extraordinary meeting the required bills to support businesses, vulnerable segments of the population, as well as highly important reforms in the banking and agricultural sectors, which will not only help Ukraine maintain economic stability, but also ensure financial support on the part of the IMF.

UNIAN memo.

Ukraine and the IMF in December 2019 reached a staff-level agreement on a new three-year extended fund facility in the amount of $5.5 billion. The decision on the new program is yet to be approved by the IMF Executive Board, while the exact date for consideration of Ukraine issue has not yet been set, since the country hasn’t fulfilled all preliminary conditions for starting the new program.

On March 11, Prime Minister Denys Shmyhal announced that Ukraine would fulfill prerequisites for launching the new program with the IMF within two to three weeks. The IMF on March 5 said that the Fund would provide about $50 billion in rapid financing for low-income economies and developing economies to overcome the negative effects of the coronavirus epidemic. On March 16, the Fund expressed willingness to mobilize a $1 trillion credit potential to help member states during the coronavirus epidemic.

Managing Director of the International Monetary Fund Kristalina Georgieva on Thursday, March 27, announced significant progress in negotiations on a new Extended Fund Facility for Ukraine. To get the new aid package, Ukraine is supposed to pass bills on fixing issues with banks and implement land reform.

© UNIAN 2020

2 comments

  • It sounds like Zelensky is reluctantly backing the anti-Kolomoisky bill. Ah, the power of the people. They even tried to move the vote to Saturday to avoid the people…

    Liked by 2 people

  • If Ze wants to avoid default he had better get it together and say yes to the land market and by by to Kolomo.
    The IMF has made it clear. Do it or no money.
    There are just no other options.

    Liked by 1 person

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