Ukraine subject to the requirements of the IMF

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Photo: RIA Novosti

The Verkhovna Rada of Ukraine adopted the draft state budget for 2019, Reuters reported. It follows one of the main conditions set out earlier by the International monetary Fund (IMF) to provide the new tranche.

The process of budget negotiations in Parliament took several hours lasted until the morning of November 23. The deputies approved the draft prepared by the government. One of its main parameters — a deficit of 2.3 percent of GDP. Also for 2019 envisaged economic growth rate of three percent of GDP, inflation at 7.4 percent and the hryvnia exchange rate to 29.4 per dollar.

The adoption of the budget already commented on the Minister of Finance Oksana Markarova and Prime Minister Vladimir Groisman. They said that it will allow Ukraine to “confidently enter in 2019” and to “ensure the country’s stability and development”.

In October, Kiev agreed with the IMF on granting a new loan of $ 3.9 billion. It needs to help pay off creditors on previous commitments, because in 2019, will have peak debt payments. The Fund, however, has several conditions. Chief among them: the adoption of a balanced budget with a deficit of no more than 2.5 percent of GDP and the increase in gas prices for households to market level. Creditors also demanded to establish anti-corruption court and to reorganize the State fiscal service.

Video, photo All from Russia.

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