President Viktor Yushchenko has sent letters of intention to the International Monetary Fund (IMF), the government and the National Bank of Ukraine (NBU) with proposals for removing obstacles arising from the failure of previous agreements with the Fund and continue the cooperation, Yushchenko said Friday at a meeting with G7 ambassadors and the European Commission representatives, according to UKRINFORM. 

Yushchenko expressed confidence that the plan of reforms provided by the Memorandum is crucial for Ukraine, which can no longer delay deep reforms in fiscal, energy and banking sectors. 

The head of state also explained his motivation in signing the law on a rise in social standards. The President, however, stressed that this signature did not prevent further work with the IMF as social protection of the most vulnerable people in Ukraine had been fixed in the Memorandum.

Media reported earlier that IMF Managing Director Dominique Strauss-Kahn told the Reuters news agency that Fund would continue cooperation with Ukraine only after presidential elections. 

At the same time, the IMF headquarters in Washington told Ukrainian journalists that Strauss-Kahn had expressed the IMF's readiness to continue cooperation with Ukraine "as soon as the country's leadership reaches consensus on this issue." 

For his part, Ukrainian Vice Premier for European and International Integration Hryhoriy Nemyria rejected these reports saying that Strauss-Kahn statements had been wrongly interpreted. 

The IMF approved the Stand-By Arrangement with Ukraine in November 2008 in an amount equivalent to about USD 16.4 billion, and allocated the first disbursement of USD 4.5 billion. 

On May 12, 2009 Ukraine received the second tranche worth USD 2.8 billion. 

Part of that tranche, worth USD 1.5 billion, was sent directly to the national budget of Ukraine to finance the government's external commitments. 

The third tranche amounted to USD 3.3 billion instead of the USD 3.2 billion planned earlier. 

The IMF initially planned to allocate the fourth tranche, worth 2.5 billion Special Drawing Rights (around USD 3.71 billion), to Ukraine on November 15, 2009. 

Meanwhile, Ukraine's Finance Ministry forecasts the IMF will decide on extending the fourth disbursement for Ukraine by November 30.


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