#Commentary of Marina Zheynova on imposition of new conditions for Ukraine by International Monetary Fund
Ukraine has completely lost the IMF’s trust. Obviously, a stand-by programme is offered by the IMF due to profound crisis developments in the country and difficulties to fulfil credit liabilities. The Ukraine’s establishment will not obtain another tranche due to failure to comply with the strict requirements and conditions of the IMF.
In this regard, the leadership of Ukraine should take either unpopular decisions, which are extremely unprofitable before elections, or dance to the tune of the IMF and bring remaining un-privatized assets of the country to the hammer.
Debt payments have already reached peak values so far. And even with the allocation of another IMF’s tranche, funds will be spent on paying off foreign loans, and not on covering budgetary deficit. Assuming that a debt-to-GDP ratio has almost doubled over the last few years, up to 72%, the situation is becoming practically a stalemate one.
The increase in the price of gas for the population is artificially delayed, despite the decisions of the Ukrainian Cabinet of Ministers. However, the price of gas for industrial consumers is going up, which affects the cost price for ordinary citizens. The IMF’s requirement to adjust the gas price to the level of import parity and double its price for the population will result in greater indebtedness of consumers to the supplier. Work is also being done systematically to reduce the number of citizens who can qualify for subsidies, including by raising the minimum wage.
There is no need to speak about the adoption of a balanced budget, and anti-corruption reform will be declared only on paper, as well as the adoption of the law on anti-corruption court, which left gaps and a place for corrupt Ukrainian power to manoeuvre.
Marina Zheynova, the DPR People’s Council deputy