Ukraine's finance minister says new program with IMF possible only if reforms successful

"The new program is not being discussed. What could it consist of? Unfulfilled provisions of the current memorandum? What’s the point? We need to realize all we can for the country within the framework of the existing cooperation [program]. First, we are talking about priority reforms required under the program. Only after its implementation can we consider the next steps in cooperation with the Fund," he told Dzerkalo Tyzhnia January 20.

Danyliuk noted that the Finance Ministry is making every effort to ensure the extension of the IMF program. "Our failure to receive a single tranche this year and dropping out of the IMF program are in fact synonymous, as the program expires in the first quarter of 2019. Now my considerable efforts are aimed at the successful continuation of the IMF program. We see that there is a certain delay with the tranche, because certain key laws have not been considered by parliament in time. One of them, namely, the law on privatization, is being considered this week [it has already been passed by the Rada]," the official said.

The minister also stressed the need to continue reforms within the current IMF program.

Read alsoIMF calls on Ukraine to create anti-corruption court based on Venice Commission's feedback"Of course, the pre-election year, as many say, complicates everything. But we have reached a certain pace of change and increased inertia. It is important that we not lose this pace and that we implement both the laws that have already been passed and those that will be adopted. To this end, we should focus on reforms rather than on elections. We cannot afford halting. And if that happens, the issue of continuing the IMF program will not emerge as such. If there is no reform, there will be no program. It's that simple. Both the president and prime minister are aware of this. So I am confident there will be progress," Danyliuk added.

As UNIAN reported earlier, the IMF noted that, to see the completion of the fourth review of the cooperation program and to receive the fifth tranche, Ukraine needs to ensure that the pension reform is consistent with the objectives of cooperation, including long-term financial sustainability of the Pension Fund; as well as to pass a law on privatization, bring gas tariffs in line with import parity, create an anti-corruption court, and adopt a budget for 2018 with a deficit of no more than 2.5% of GDP.

The National Bank of Ukraine expects to receive in 2018 two credit tranches from the IMF totaling $3.5 billion.

Managing Director of the International Monetary Fund, Christine Lagarde, and Ukrainian President Petro Poroshenko will meet at the World Economic Forum to be held in Davos January 23-26 to discuss reforms in Ukraine necessary to secure the next credit tranche within the Extended Fund Facility program.

Read alsoIMF’s Lagarde, Poroshenko to discuss Ukraine reform for allocating another aid trancheUNIAN memo. In March 2015, the IMF approved a four-year EFF loan program for Ukraine under which $17.5 billion will be disbursed. Ukraine has already received four disbursements from the Fund to the tune of $8.7 billion.