Ukraine's cooperation with the IMF – unfulfilled hopes for deeper reform
Ukraine's cooperation with the IMF – unfulfilled hopes for deeper reform

Author(s): Sławomir Matuszak
Subject(s): Economic policy, International relations/trade, Developing nations
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Ukraine; IMF
Summary/Abstract: The Party of Regions took power in early 2010, after Ukraine had been plunged deep in economic crisis. Over the next year, with the external markets recovering, the country’s economic situation started to improve gradually. Ukraine’s economic stabilisation was also strengthened by its resumed cooperation with the International Monetary Fund, which provided for a loan worth $15.1 billion. The issuing of successive tranches of the loan was made dependent on the implementation of a comprehensive reform programme. The cooperation went quite smoothly at first; however, as the economic situation in Ukraine improved, the reformist zeal of the Ukrainian government started to fade, and obstacles began piling up. As a result, Ukraine was refused the third tranche, scheduled for this March, and for the moment the credit line remains frozen. Even though the IMF has numerous reservations about the Ukrainian government's economic policy, the fundamental condition for resuming cooperation is reform of the pension system, which the parliament should adopt.

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