Ukraine may borrow funds on foreign market without IMF tranche – NBU governor

Governor of the National Bank of Ukraine (NBU) Yakiv Smolii says Ukraine may borrow funds on the foreign market without receiving another tranche of the International Monetary Fund's (IMF) loan, but their cost will be higher than the previous ones, and their volumes will be lower than those declared.

"Of course, there are external attractions in the government program. In my opinion, these will be somewhat more expensive than the previous ones, and the volumes may be lower than those declared," Smolii told journalists, answering the question whether the alternative scenario without receiving another IMF tranche provides for Ukraine entering the foreign borrowing market.

Read alsoPoroshenko says Ukraine to continue cooperation with IMFAt the same time, Smolii said that in this case, the regulator will have to apply a tougher policy to contain inflation. "If inflationary pressures continue to grow, the National Bank will certainly strengthen monetary instruments to curb inflation and introduce certain restrictions to deter possible outflow of capital," the NBU head added.

At the same time, he expressed hope that such a scenario would not be realized and Ukraine would fulfill its obligations to receive the next tranche, to ensure that the program with the IMF continued.