Leave without money? IMF again delayed tranche

Оставят без денег? МВФ снова задержит транш

Ukrainian authorities explain the delay by the delay in land reform.

The international monetary Fund has again postponed the release of the next tranche to Ukraine.

The reason Prime Minister Vladimir Groisman said that the government did not have time to prepare a project on land reform, contrary to the obligations to the Fund.

What can threaten Ukraine delay in the allocation of credit, understood the Correspondent.net.

How much money

The cooperation program between Ukraine and the IMF has been working for three years. Initially we were to receive $ 17 billion over two years. But at the moment the Fund for this program was allocated only $ 4.6 billion.

In March 2015, the Board of Directors of the International monetary Fund approved a program for Ukraine increased funding. Through it the total package of assistance to Ukraine could reach $ 40 billion, but as we see, while Kiev is very far from that.

Transfer

The Fund has decided to postpone until the winter of the provision of Ukraine of the fifth tranche of aid to $ 1.9 billion.

According to Bloomberg, the reason for the delay was the fact that the Verkhovna Rada within the stipulated time frame did not support the pension and land reforms which was the main requirement for allocation of the next tranche.

Prime Minister of Ukraine Volodymyr Grauman in an interview said that the main problem with the bill on land reform.

“We are working on reforms, and the fifth tranche will arrive”, – expressed hope Groisman.

Finance Minister Alexander danyluk said that Ukraine expects in the fall of the IMF decision on granting the next tranche.

So with the earth?

Statement of Groisman on land reform looks strange, because after the visit of the President of Ukraine Petro Poroshenko in the United States reported, hundred the land was removed from the agenda of relations between Kiev and the IMF.

The point about the need to launch a land market will not be a prerequisite for the allocation of Ukraine the next tranche from the International monetary Fund reported sources close to the negotiations of the parties in the United States.

“President Petro Poroshenko asked to remove the question about the launch of the land market from the agenda and Christine Lagarde, IMF chief, agreed,” the source said.

According to him, the point about the need to launch the land market will be removed from the Memorandum between Ukraine and the IMF.

“Today between Poroshenko and Lagarde, an agreement was reached to exclude the land reform of the list of issues that affect the tranche,” added the source.

Outstanding obligations

In fact, Ukraine unfulfilled obligations to Fund much more.

In the country and was not carried out the privatization of objects of state ownership. Failed two attempts to sell the Odessa port plant, the most delicious item from the list of privatization.

Pension reform also became subject to disputes between Ukraine and the IMF.

In addition, the authorities drag out process of creation of anti-corruption court, which also is a direct obligation to the IMF.

Impact of the delay of the tranche

Ukraine has the right to spend billions from the IMF only to replenish the gold reserves.

Borrowing from numerous international financial organizations, which regularly lend to Ukraine, closely associated with tranches of the IMF. Loans from the world Bank, EBRD, EU, foreign governments issued to Ukraine in the case if cooperation with the IMF is on track. Without a loan from IMF will not be of income.

Also the delay in tranche may have a negative impact on the hryvnia exchange rate, which since the end of the summer and so all forecasts should begin to fall.

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