Weekend Economists Ring in the New! New Year 2015

[Demeter]

22. Ukraine PM says he is sure IMF will continue funding, expects no private investment

http://itar-tass.com/en/economy/770066

Ukrainian Prime Minister Arseniy Yatsenyuk said on Tuesday the IMF mission, which will arrive in Kiev on January 8, will continue to provide funding to the country.

“I’m sure that there will be a new program with the IMF. Its purpose is to stabilize state finances and to support the trade balance,” he said.

“We had previous programs with the IMF because we followed up on our words and carried out reforms,” Yatsenyuk said.

This year the government has received $9 billion external aid and paid $14 billion, he said. “I don’t know what would happen if we did not pay our debts. But if we hadn't not fulfilled our obligations, there would be no aid,” Yatsenyuk said.

In 2015 Ukraine does not expect private investors. The country only expects international financial organizations to provide support, he said. Ukraine received the first tranche ($3.2 billion) in May. The second tranche ($1.4 billion) was provided in early September. Deputy head of the Ukrainian National Bank Alexander Pisaruk said the National Bank expected a new program with the IMF to be approved till the end of February.

“If all is as we see, we’ll be able to increase funding to Ukraine with the IMF. The sum of $15 billion is mentioned. We hope that it will be possible till the end of February,” Pisaruk said.

In early December, Yatsenyuk said Ukraine has paid $14 billion on its foreign debts. He said Ukraine simultaneously received various types of foreign financial assistance worth $9 billion. Ukraine’s foreign debt currently stands at $72.9 billion, he said.