Ukraine Will Die Without The IMF Help, But It Will Die Faster With It

For Ukraine it is vital to maintain cooperation with the International Monetary Fund (IMF), declared the international “Fitch Ratings” rating agency [a tool of the US Federal Reserve.

Ukraine intends to establish a state budget deficit in relation to GDP at the level of 2.5%, however it won’t be possible to do this without IMF money, emphasised the agency. With the help of the IMF Ukraine will be able to gradually increase payments on debts and keep its international reserves.

“Fitch Ratings” confirmed the earlier long-term issuer default ratings of Ukraine in foreign and national currencies at the level of “B-” and the forecast as “stable”.

Meanwhile, the Ministry of Finance of Ukraine confirmed a new anti-record: on the state accounts there is only 1.9 billion hryvnia (about $70 million). Soon there will be nothing to pay pensioners and state employees with.

The main financial problem of the country is the huge debt, first of all to the IMF. In 2019 the situation will worsen, Ukraine is supposed to pay more than $6.5 billion to the IMF. “Is it possible to pay the IMF without receiving any new tranches? Today it is impossible,”said the deputy of the Verkhovna Rada of Ukraine Vadim Denisenko.

At the beginning of the year Ukraine came in the second place in the world for the size of debt to the IMF – $11.9 billion, with Greece only owing more – $12.8 billion.

According to the National Bank of Ukraine (NBU), the huge national debt of the country raises serious concern, since it reached $77 billion (85% of GDP of the country). Kiev recognises that the threat of a default on its obligations is more than real. In the next four years the country must pay $27 billion on debts, said the Prime Minister of Ukraine Vladimir Groysman in May.

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