REUTERS
Ukraine and the IMF have agreed on a new three-year US$5.5 billion Extended Fund Facility for Ukraine.
Ukrainian Minister of Economic Development, Trade and Agriculture Tymofiy Mylovanov says cooperation of Ukraine with the International Monetary Fund (IMF) increases confidence of lenders and investors in the country's economy, while the lack of a cooperation program with the IMF will lead to an economic crisis.
"In fact, the issue regarding the IMF is not about money, but about trust in Ukraine's economy. The IMF is a certain marker of trust. If there is IMF support, there is confidence of domestic and international investors in the Ukrainian economy and the economic development program, as well as in the government's actions. As a result, there are investment and international trade," the minister wrote on Facebook on December 8.
Read alsoNew agreement with IMF lets Ukraine get another EUR 500 mln from EU
According to Mylovanov, major investors, owners of large-scale Ukrainian and international businesses, as well as internal experts, are guided by the IMF's position when assessing the state of the economy.
The official stressed that the IMF provides loans only if it is certain that the government's economic policy is responsible. Yet, the interest on the IMF loans is quite low, a mere of 2%-3% per annum.
"Therefore, it is important for Ukraine now – after the IMF program has been confirmed at the working level – to attract new investors so that the economy grows, the number of jobs for our people increases, and wages reach the European level," the minister added.
As UNIAN reported earlier, Ukraine and the International Monetary Fund had agreed on a new three-year US$5.5 billion Extended Fund Facility for Ukraine.
Ukrainian Finance Minister Oksana Markarova said that an agreement with the IMF would let Ukraine get EUR 500 million in macro-financial assistance from the European Union on favorable terms in the coming months.