Dmitriev: the new IMF loan will not bring prosperity to the Ukraine

Dmitriev: the new IMF loan will not bring prosperity to the Ukraine


Formal conformity of Ukraine to the requirements for recipients of IMF assistance will not prevent the allocation of new tranches, said the Deputy of the state Duma Oksana Dmitrieva, but the programs imposed by the Fund, of welfare to anyone not brought.

MOSCOW, 29 Oct. The loan from the International monetary Fund, which can be issued to Ukraine in violation of existing rules, will not bring the country prosperity, I’m sure a member of the Duma Committee on budget and taxes Oksana Dmitrieva.

“The IMF always gives additional support to pay their loans. From the point of view of software that they impose, to any country of prosperity they have brought, including our when we lived on the recipes of the IMF and some still live now,” — said Dmitriev.

The USA together with other Western countries are preparing next month to change the policy of IMF lending to allow the Fund to continue financing of Ukraine in case of Russian default on the loan, reported the newspaper The Wall Stret Journal.

Formal conformity of Ukraine to the requirements for recipients of IMF assistance will not prevent the allocation of new tranches, the Deputy is sure. “The most important thing — physical solution, and the mechanism they come up with,” said Dmitriev. “The U.S. is more interested to support a country through the IMF, rather than directly. Since then all costs are redistributed to other countries,” she explained.

It is unlikely that such a decision will affect the credibility of the IMF in the world, says Dmitriev, because he’s already quite low. Currently, the IMF’s policy prohibits the Fund to provide loans to countries that have experience of overdue payments to other governments. And Ukraine has the risk to prevent a default on its bonds for 3 billion dollars, purchased by Russia.

The four-year program of financial assistance to Ukraine was approved by the IMF Board on March 11. The programme envisages allocating the Fund’s $ 17.5 billion dollars, and all international creditors over four years — $ 40 billion. Ukraine this year has already received 6.7 billion dollars in aid, total aid, envisaged for 2015, $ 10 billion. This year allocated a further two tranches of 1.7 billion dollars.