Ukraine can count on only one IMF program, EFF or RFI – ex-Finance Minister

Ukraine can receive from the International Monetary Fund either $5.5 billion to $8 billion under the Extended Fund Facility program, or $1.4 billion through the Rapid Financing Instrument (RFI), while the combination of these programs is impossible, former Finance Minister of Ukraine Ihor Umansky believes.

"Ukraine has officially applied to the IMF for a new program. The availability of two programs is impossible. Either we get the EFF program in an increased amount of $8 billion, or we abandon the EFF program and apply for a coronavirus program of $1.4 billion," he said in an interview with Strana.ua.

Umansky explained that the coronavirus program (RFI) has the same return conditions and rate as the EFF program, and only the poorest countries to which Ukraine does belong can count on other assistance instruments from the fund.

According to him, the "government is playing" in an attempt to combine the two programs, although this is not possible.

The ex-minister noted that in case of failure of the "banking" law, which is a condition for the provision of the EFF, Ukraine will need to contact the IMF under the COVID program.

"But, in any case, the decision needs to be made before mid-May. Otherwise, there is no treasury liquidity. And the National Bank took the position that they would not support budget liquidity," Umansky emphasized.

He also noted that the Ministry of Finance has no opportunity to enter foreign markets before the issue with the IMF is resolved.

Source: www.en.interfax.com.ua