Economy 2021-08-05T04:02:47+03:00
Ukrainian news
NBU Expecting Progress In Talks Between Ukraine And IMF

NBU Expecting Progress In Talks Between Ukraine And IMF

negotiations, international monetary fund, National Bank of Ukraine

The National Bank of Ukraine expects progress to be made in Ukraine's negotiations with the International Monetary Fund.

The National Bank of Ukraine announced this in a statement, the Ukrainian News Agency reports.

According to the statement, a prolonged slowdown of the implementation of the cooperation agreement between Ukraine and the International Monetary Fund poses a risk to the financing of the state budget deficit, primarily in subsequent years.

It can also lead to a deterioration of inflationary and exchange-rate expectations, which will force the central bank to pursue a tighter monetary policy, the statement said.

However, according to the statement, implementation of the cooperation program between Ukraine and the International Monetary Fund will allow Ukraine to receive the stipulated amount of official financing and reduce the cost of other borrowings in foreign and internal markets.

It will also allow the National Bank of Ukraine to keep the country’s international reserves at USD 29-31 billion in 2021-2023.

The National Bank of Ukraine believes that a tightening of the quarantine restrictions in Ukraine and around the world would pose a major risk to its macroeconomic forecast.

New strains of the COVID-19 coronavirus, particularly the Delta strain, are rapidly spreading around the world, and they could inflict new damage on the Ukrainian economy.

At the same time, the National Bank of Ukraine estimates that the negative effect of all the quarantine restrictions that were imposed in the first half of 2021 on the summer’s real GDP at 0.6 percentage points.

The other risks include an escalation of the military conflict with Russia and a sharp deterioration in the terms of trade.

As Ukrainian News Agency earlier reported, the National Bank of Ukraine has kept its forecast for real GDP growth in 2021-2023 unchanged at 3.8-4%.


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