The presidential secretariat hopes for the talks with the International Monetary Fund (IMF) on the second tranche to Ukraine to be held next week, Oleksandr Shlapak told a briefing on Monday.

He told journalists that Ukraine had violated the terms of its agreement signed with the IMF last year. In particular, he said the country had failed to retain its budget indicator at the level of 1% of GDP and to adopt a deficit-free budget in 2009. Shlapak said that the government directly intervened in the constitutional powers of the National Bank of Ukraine due to the adoption by the parliament of the law on the state budget and added that it had failed to stabilize the situation on the currency market.

“These are major claims presented by the IMF to Ukraine,” Shlapak said, adding that late in January this year, when an IMF mission was on a visit to Ukraine, no agreement was reached on the settlement of these problems.

He said that in order to continue cooperation with the IMF, it is necessary to have a single and agreed position between government agencies and concerned institutes.

Shlapak said that the International Monetary Fund is ready to conduct another review of its loan program with Ukraine taking into account the way the situation changed compared to October 2008. He said that the fund's mission insisted that a number of important issues be taken into account.

He said that this week, serious talks would be held with the government and the National Bank so that Ukraine's single position is adopted in talks with the IMF. Shlapak said that the country's leadership would then participate in a council to agree this position.


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