Reform and kreditai the IMF will be able to support the economy of Ukraine

in anticipation of the world crisis, or at least, the recession caused by coronaviruses, Ukraine is losing speculative capital, which was attracted through government bonds, as investors looking for more secure assets.

On the background of falling demand for government bonds, the reduction of budget revenues and the need this year to repay large amounts of foreign debts, the only likely source of financing is the IMF.

the Ministry of Finance increased the rate of budget deficit in 2019 to 81 billion compared to the previously announced 78,05 billion, confirming analysts ' forecasts. The Ministry of Finance is explained by the double election, a change in price conjuncture on world markets and new macroeconomic trends, in particular, strengthening of the hryvnia.

Yesterday's auction of government bonds was frankly a failure, with the Ministry of Finance managed to attract the budget UAH 1.6 billion, while a month ago it was sold at auction securities 6.3 billion. However, government bonds were the main source of raising funds in Ukraine in 2019 and caused a sharp strengthening of the hryvnia.

the Experts who believed that Ukraine does not need IMF lose optimism in the face of reality. To avoid an economic collapse will allow reform and obtain funds for the refinancing of the IMF, world Bank and partners from the EU.

Principal payments on external debt will fall in March and may. For Mar resources is enough, but for the may payment you need to obtain additional financing in the form of a new IMF program.

Outbreak coronavirus will force the Ukrainian authorities to act decisively. To negotiate with the IMF, it is necessary to unblock the Parliament, which deals with the land question, to vote on land reform and "andikalovsky the law." Perhaps against the background of volatile markets, the IMF will meet authorities of Ukraine and will provide a new tranche, as an exception, knowing that other funding sources are not.