Experts explain that numerous credits stopped the economic growth
Ukraine has received from the Fund more than returned. Photo: AFP
The international monetary Fund (IMF) has deferred the next tranche to Ukraine in late 2017. A loan of 1.9 billion dollars, which was supposed to arrive in August fell through due to the fact that the Parliament did not put an end to the pension and land reforms.
“Today”, with the help of analysts from the Economic discussion club (EDK) and the data of IMF, analysed how much for 23 years of Ukraine was and gave money.
MONEY. During the cooperation with the IMF, Ukraine has received 35.2 billion dollars, and returned a little more than 18 billion (see infographic). However, only percent, our country paid $ 2 billion 785 million dollars.
It is worth noting that in the history of the relationship with the Fund, there are two periods when installments whatsoever — from 2002 to 2007 and from 2011 to 2013. According to the analyst of EDK Yuri Turyanskogo in the first time period the state of the economy testified to the fact that the debts that Ukraine can understand yourself. According to him, during this period it was very difficult to prove the need for stabilization loans.
“With regard to 2011-2013, in this period, we have not fulfilled the obligation to reform, and this did not suit the Fund,” says turanski.
In turn, the economic expert Igor garbaruk has a different opinion. According to him, in those years when the world economy grew rapidly and the price of raw materials increased cooperation between Ukraine and the IMF damped. In particular, he tells about the period from 2002 to 2007.
“At the same time, in 2008-2009 the most severe financial and economic crisis, which resulted in decrease of business activity on a global level, has resulted in a reduction of our exports almost 40% and reduce GDP by 15%! Because of this cooperation program with the IMF were again reopened. The result — more than $ 14 billion that we have received over the next three years (2008-2010)”, — the expert explains.
IS IT NECESSARY? While garbaruk said that Ukraine could do without trenches. “On the agreed terms means, we can use the money exclusively for the replenishment of foreign exchange reserve and debt payments to the IMF,” — said the expert.
Yuri turanski also believes that the Ukrainian economy would be able to last the time without trenches.
For this, in his opinion, it is necessary to establish the promotion of Ukrainian exports on foreign markets, and to reform our financial system: “for Example, we do not have a free market securities. In addition, there are cases where the Treasury account hangs several billion hryvnia, while the government pays the debt service. Would work us financial market, as in other countries, this money could be placed at least under a certain percentage, to work on the economy. Then would decrease the need for the tranche of the IMF.”
However, according to the head of the Secretariat of the Council of entrepreneurs under the Cabinet of Andrew Zablovskogo, during the acute economic crises of Ukraine is very difficult to obtain money from other countries and organizations and the IMF acts as a “lender of last resort”.
“In times of crisis, the falling ratings of the state and very high default risks, it is difficult to borrow money at reasonable interest rates. Therefore the loan rate, the IMF is the most acceptable on the market. And tranches can be perceived as a serious element of macroeconomic stabilization in a difficult time,” he concluded.
Who needs the Fund
Relations between Ukraine and the Fund in recent years has changed dramatically. So, in 2000 our country was not in the top largest borrowers of the organization on the first three places were Mexico, Korea, and Russia. In 2011, borrowed at that time of 14.2 billion dollars, we ended up in second place. More of us then loans got only to Romania (almost $ 15 billion), and third place went to Greece (13.9 billion dollars).
Today, among the largest borrowers of the Fund — Portugal (almost 37 billion) and Greece (about 36 billion dollrov). Bronze keeps our country (including the last tranche of 35.2 billion dollars). And the next in the ranking are Ireland (7.3 billion dollars) and Pakistan ($5 billion).