UKRAINE CAN NOT PAY OFF IMF LOANS

The Verkhovna Rada deputy Vadim Denisenko expressed the opinion that Ukraine does not have sufficient funds to pay off IMF loans .
It should be noted that from 2004 to 2014, the Kiev’s debt to the IMF was about $ 45 billion. During these years in Ukraine there was a stable economy. However, according to the deputy, all this money was spent, while paying debts is necessary now.
“We will have a difficult financial situation next year. We will only pay the IMF more than 6.5 billion dollars.” Is it possible to pay the IMF money without receiving new tranches? This is impossible. “commented Denisenko.
At the same time, the Verkhovna Rada deputy noted that the receipt of the last tranche from the fund is extremely important for the state. Taking into account the state of the banking system of Ukraine, the only source of receiving money is abroad, the deputy added.
Vadim Denisenko’s statement was commented on by Pavel Nefidov, General Director of the CIS Financial and Banking Council. He noted that Denisenko’s recognition is a long-known fact.
“It was never news: indeed, a large part of the trenches went to service the three previous loans. It’s also true that loans are given to Ukraine not on economic conditions but on political ones to stabilize the economy. The country can only service its current debts by attracting new loans, and, accordingly, paying certain interest for this service.” Pavel Nefidov said.
President of Ukraine Petro Poroshenko signed on August 2 a provision on appeal in the law on the Higher Anti-Corruption Court, which is one of the main requirements for Ukraine from the IMF to provide the next tranche of the loan.
The authorities of Ukraine expected to receive the fifth tranche from the IMF until the end of 2017, but this did not happen. One of the conditions for granting a tranche is called an increase in the price of gas for the population of Ukraine. Kiev postpones the adoption of a decision on this issue.

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