Financial News and Economical Crisis

a visit to Kiev missionof the International Monetary Fund. From the findings of Western experts depend on Ukraine's chances to obtain the latest in this year (fourth) installment of the loan fund of $ 3.7 billion, the negotiation process will not be easy: the IMF has accumulated a lot of claims to the Ukrainian authorities.

In early October, the IMF delegation met with Vice Prime Minister of International and European Integration Grigory Nemyria in Istanbul, after which Ukrainian officials confirmed: the fourth tranche of the loan in question due to political instability in our country, particularly the ineffectiveness of the parliament.

Moreover, Kiev has failed to meet articulated Fund principal terms of the next tranche of: increased gas prices for businesses and people, the privatization of state enterprises, reducing the budget deficit and the rejection of raising social standards. Ukrainian officials publicly accepted his proposed rules of the game, but once arrived in their own way. Thus, prime minister Yulia Tymoshenko announced that it would not raise the price of gas for the population in times of crisis.

Moreover, last week Rada adopted in first reading a bill to raise sotsstandartov dramatically increases the budget deficit of the current and future years. Ironically, the vote for the populist project in general, deputies can in the first day of the next plenary week, October 20, during the summing up of the IMF mission in Kiev. Impression on the representatives of the fund is to be produced and held, and then repealed the privatization of the Odessa port plant. In general, the guests of the capital of Ukraine is to think about and will say Ukrainian partners.

senior economist at the International Center for Advanced Studies Eldar Gazizullin sees three possibilities. Either Ukraine refuses to comply with the IMF because of the presidential elections: then tranche is transferred to the post-election 2010 or do we grudgingly fulfill the requirements of and receive money. Finally, the Foundation again makes concessions and offers free credit obligations by the Ukrainian side. All options have a chance of implementation. But I incline to the fact that the IMF will insist on the fulfillment of their demands. The Fund has several times made concessions, and this time it will simply indecent to persevere, - said the expert. According to him, the government is very interested in obtaining tranche: without this money the state would be difficult without the financial turmoil to end the year. Gazizullin emphasized that the longer term relations with the IMF will affect the result of the presidential election: If the election victory by Viktor Yanukovych, is expected to worsen relations with the IMF.

In turn, Minister of Economy Bohdan Danylyshyn sees no direct correlation between the chance to get tranche of the IMF and the outcome of Ukrainian presidential election: The fund allocates the next tranche, analyzing not political induction, and the challenges and opportunities posed in the road map proposed by us when the decision to stand by the program for Ukraine .

IMF police agency: Fund operates as a doctor - prescribes medicine, and further cause the patient to accept them or not. On the one hand, we must fulfill the requirements of the IMF, on the other hand - Ukraine is at the peak of the political cycle, that causes current behavior of the authorities , - said the executive director of the Fund Bleyzer Oleg Ustenko. He sees the prospects for the fourth tranche of the loan stand by, but expects tough negotiations with international experts.

In late October 2008 the IMF approved a credit program for Ukraine stand by in the amount of SDR11 billion ($ 16.4 billion). At present, the total amount of credit allocated to Kiev for an IMF program is $ 10.9 billion

fourth tranche of $ 3.71 billion, the IMF was planning to allocate November 15 after the third revision of the program of bilateral relations. The fifth installment in the amount of SDR375 million (about $ 560 million), Kiev could get in the middle of February 2010 These terms are defined in the table to the corrected after the second revision of the program of cooperation between Ukraine and the IMF.

Not in the gas

the eve of great changes in the Naftogaz of Ukraine the Government of packs the company …

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