IMF names new terms for cooperation with Ukraine

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IMF called for conditions to receive remaining funds under the Stand By Buy program

Photo: rus.err.ee

In order to meet the conditions of the stand by the program and receive the remaining funds, Ukraine must, at the very least, maintain the current model of central bank management, and not shy away from the principles of inflation targeting and a floating exchange rate. This was stated by the IMF official representative in Ukraine Yosta Lyungman.

“The program is based on these parameters. We are convinced that the central bank management model and the monetary and financial sector management system are in line with Ukraine’s economic interests, “Leungman said in an interview Liga.net.

According to him, for this model to work, the central bank must be confident that it will “be able to make difficult, but necessary decisions without politically motivated consequences”.

“Central bank independence is not an abstract concept. There is a clear correlation between central bank independence and economic performance.

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On 1 July, Yakov Smoly, the head of the NBU, resigned. The reason he called systematic political pressure. On 3 July, Varkhovna Rada dismissed Smoli. Many experts called the resignation of the NBU chief “an alarm.”

In early June, the Board of Directors of the International Monetary Fund approved a $ 5 billion cooperation program with Ukraine. This program is designed for 18 months.

Read: Will Ukraine deny IMF loan: Finance Ministry statement

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