The cooperation with the IMF failed because of the authorities – the economist

Сотрудничество c МВФ провалилось по вине власти - экономист

Another loan from the IMF Ukraine was not given because of the authorities, he said.

Ukraine failed to cooperate with the IMF and a large part of the blame lies with the Ukrainian authorities, not the Fund. So says Executive Director of the International Fund blazer Oleg Ustenko.

“No one interfered with Ukraine to take the path of sustainable economic growth. For this it was necessary to make reforms. In each and every program in a particular country, the IMF has three sets of questions that tries to help resolve. The first is monetary policy, the second unit is a budget policy, and the third is the issues related to structural reforms. And this matrix is unchanged, it is the same all the time, whether we’re talking about Argentina, Greece, Ukraine or any other country. So the problem is primarily the recipient countries, the country of the borrower that it does not want to do structural reforms in a number of reasons: because it is offensive to the interests of political elites, reluctance to reduce level of corruption or something”, he said.

He gave the example of Romania and Bulgaria, which after the implementation of the IMF program became members of the EU.

“The difference is that when he said that in Romania and Bulgaria the high level of corruption, they are trying something to do with it. When Romania and Bulgaria was not accepted in the EU because they had a huge problem with organized crime, they solved them. And the IMF program has not been in this case a nuisance, and no one said she was bad,” he recalled.

The economist also believes that it is the government’s fault that at the moment Ukraine is de facto caught in debt bondage and forced to borrow money just to pay old debts.

“To borrow bad, but much worse to take money in debt and not trying to help themselves, and expect that you will either cheat, or turn a blind eye. It is clear that if you do nothing, you’re not on the path of sustainable economic growth with debts you will be calculated more and more difficult. An alcoholic who never stops drinking, and takes money in debt seems to receive some education, and he spends on drink them, in the end ends badly,” – said the expert.

Output, according to Ustenko, must be an attempt to change the logic of thinking. Moreover, Ukraine can do without IMF.

“We can do without the IMF, if we’re going to do a swift reform. But something I can’t see for the last 25 years, Ukraine’s desire to do a rapid reform, but reform as such”, – he reminded.

The economist supports the rejection of cooperation with the IMF, but only if in parallel will be developed the plan of carrying out real reforms.

“We need to clearly understand what the country is going to grow to fill its budget, due to what is going to cover the need for external financing,” he said.

We will remind, earlier it was reported that the Board of Directors of the International monetary Fund moved to a short term scheduled for Monday, March 20, consideration of the completion of the third review of the eff Program for Ukraine.

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