Ukrainian Minister Oleksandr Danylyuk has not ruled out budget cuts in case cooperation with the International Monetary Fund (IMF) is reduced, according to business news portal Epravda.
”The shortfall of external financing complicates the situation. We will be forced to take extremely unpopular measures, including a reduction in budget spending,” the minister stated, epravda.com.ua wrote.
He said the government is hoping for a base-case scenario – the arrival of an IMF tranche and further implementation of the program.
”Cooperation with the IMF is a task not only for the current year, since the IMF doesn`t simply support our reform program. Every IMF tranche is a clear signal for investors: there are changes and they may invest in Ukraine,” the minister said.
Without the IMF, Ukraine will not be able to get US$1 billion in loan guarantees from the United States, EUR 1.2 billion in macro-finance assistance from the European Union and loans from European partners for gas purchases.