There has just wound
up a meeting of the Cabinet of Ministers of Ukraine. The Government of Ukraine
approved the draft Memorandum between Ukraine and the International Monetary
I remind that the previous
year we had a yearly Stand-By program with the International Monetary Fund, and
the whole list of reforms envisaged in the program was implemented by the
Ukrainian Government. However, as a result of the Russian military aggression
and aggravation of the situation in the East of Ukraine we appealed to our
western partners and the International Monetary Fund to extend financial
support to Ukraine.
We appeal to the
International Monetary Fund with a request to the Board of Governors of the
International Monetary Fund to approve a four-year cooperation program with
Ukraine. It is an Extended Fund Facility, which will enable Ukraine during four
years to obtain a financial support worth about USD 25 billion, with USD 17.5
billion out of the sum as the finance to be provided by the International
Monetary Fund to Ukraine to stabilize the financial situation within the
Throughout these four
years Ukraine will be carrying out the reforms, vital to ensure the economic and
financial stability of the state. This reform program is not for the IMF, it is
a program for reforms in Ukraine. The program is aimed to restore economic
growth. We expect in case the program succeeds and the Russian military
aggression stops, in 2016 the Ukrainian economy will start growing.
The program envisages
a number of important, hard, but effective solutions: in economy management,
curbing corruption, restoring order in the energy sector, optimization and
cutting public spending, increasing up to 3% of GDP expenditure on investment,
reducing the quantity of government officials, equity in a pension reform, and
first of all, we are talking about the reduction and elimination of the
so-called special pensions.
Government plans a broad program of assistance to low-income population layers.
At the end of the current year (starting in December) the Government will carry
indexation of monetary incomes of the population. The program envisages the
need for indexation or increasing incomes of the population depending on the
level of prices throughout the duration of it being in effect.
Besides, the program
provides for an assistance worth UAH 12.5 billion
(only in the current year) to the low-income citizens depending on the changes
in prices and tariffs, primarily for energy carriers.
We expect that the
Board of Governors of the International Monetary Fund on completion of the
negotiations with the IMF, the formal talks have been already completed by us,
will approve the aforesaid program, and Ukraine will have access both to
financial resources of foreign lenders and financial resources of private
objective is stabilization of the banking system and the exchange rate, as
renewed confidence in Ukraine, if the four-year program is adopted, will serve
as a serious factor to stabilize the currency exchange rate and an objective
and strong banking system of Ukraine, which will also contribute to the
Ukrainian economy’s growth.
Government has completed the talks. I reassure you that the political forces of
the Pro-European coalition in the Ukrainian Parliament bear a joint
responsibility to the people of Ukraine for the efficiency of reforms.
These are the reforms
much needed for the country. To ensure implementation of these reforms,
outlined in the Memorandum between Ukraine and the International Monetary Fund,
our foreign partners will provide financial assistance.
The situation is
difficult. The sum of USD 40 billion, which were received by the regime of
Viktor Yanukovych in the shape of loans, we now should return – and it is an
excessive burden on the State Budget. But due to our consecutive efficient
activity work in the framework of the four-year program with the International
Monetary Fund, we believe that 2016 will become for Ukraine a year of
stabilization and economic growth. And now it depends on the parliamentary
coalition, the Government and the whole country, how fast and effective we are
capable to introduce crucial reforms for the country.
The negotiations have
ended. We expect only a formal decision of the Board of Governors of the
International Monetary Fund.