NBU called the consequences of abandoning the IMF program

The NBU believes that cooperation with the IMF is extremely important to Ukraine and responds to its national interests.

If Ukraine refuses to cooperate with the International Monetary Fund, the country expects an increase in debt service costs, a decrease in foreign investment inflows and pressure on foreign exchange reserves. This was stated by the deputy director of the NBU Dmitry Sologub, reports on Tuesday, March 23, the press service of the NBU.

It is noted that with such a forecast, the hryvnia exchange rate will fall, while prices will rise.

“The government will have to reduce the budget deficit, the hryvnia exchange rate will weaken to neutralize the negative impact on the balance of payments and, consequently, inflation will accelerate,” he added.

Sologub noted that by refusing to cooperate with the IMF and the right to apply a “sovereign economic policy”, Ukraine will have to pay by reducing the costs of important budget projects (investments in road infrastructure, improvement of social standards, support for small and medium-sized companies) and rising interest rates, as the regulator will be forced to apply a tighter monetary policy to contain inflation.

“Regarding the fact that the IMF requirements do not satisfy the national interests of Ukraine. Ask the Ukrainians if they need a fight against corruption, fair courts and the National Bank, which ensures low and stable inflation,” Sologub said, and added that he is confident that the answer will be yes.

Earlier, the IMF called the conditions for the next tranche to Ukraine. Among them is the independence of the National Bank and anti-corruption institutions.

As reported, after the work of the IMF mission in winter, the conditions for the allocation of the next tranche to Ukraine have increased.

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