IMF's new stand-by program for Ukraine to resolve issue of financial stability – expert

Executive Director at The Bleyzer Foundation Oleh Ustenko says a new Stand-By Arrangement (SBA) for Ukraine approved by the International Monetary Fund (IMF) will resolve the issue of the country's financial stability and in the next six months, the hryvnia exchange rate and inflation will level off.

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"Now, inflation will be more predictable. I think that we have the right to expect an inflation rate next year not exceeding 10%. Well, the rate... Even with its devaluation orientation, next year there is still an opportunity to hold it," he said, as reported by the Ukrainian online news outlet Obozrevatel on December 19.

The expert stressed that the money that Ukraine will receive will be channeled exclusively into the country's gold and currency reserves.

According to him, Ukraine will be resolving the issue of financial stability within at least the following three or six months, rather than that of economic growth.

"When we talk about cooperation with the IMF, we mean first of all the credit resources that the country can receive. In the specific case, Ukraine receives this new program, which is approved and already signed by the new prime minister, the new finance minister, and the new governor of the National Bank, but still singed by an old president. Thus, we've got a new stand-by program worth $3.9 billion," Ustenko summed up.