IMF: Loan for Ukraine won't depend on fate of Tymoshenko, Lutsenko

A decision of the International Monetary Fund whether to extend a new loan to Ukraine does not depend on the possible release of Yulia Tymoshenko and Yuriy Lutsenko, IMF Resident Representative in Ukraine Max Alier told Deutsche Welle.

"The main task of the IMF is to supervise over the macroeconomic development of the country and its economic policies. Additionally, the IMF provides financial assistance to member states, which helps regulate the economy, if necessary. A decision as to whether we will render assistance to Ukraine, will depend on the economic situation in the country, as well as whether the Ukrainian government fulfills our demand in the economy," said Alier. He also noted that the terms for providing assistance for Ukraine have not changed. "Those recommendations, which we published in November 2012 in a consultation report, remain in force. Global economic environment affected the Ukrainian economy, which has led to lower rates of economic growth, decrease in exports and government receipts. As a result, the need for external loans and search for new sources of budget revenue increased sharply," Alier said. In his words, to remedy this situation, it is necessary to take specific measures, and to create conditions for economic growth, which is the main task for Ukraine. "By and large we are talking about the requirements that were identified in the previous IMF programme [higher gas prices for households, floating rate of the hryvnia, reduction of fiscal deficit - ed.]", said the IMF representative. In his view, the existing mechanisms of the economic policy will help correct macroeconomic imbalances and create conditions for the prevention of this imbalance in the future. The funding, provided as part of the IMF's loan programme, will ease the situation in Ukrainian banks. "The IMF stands ready to support the member states in taking economic policy measures, but each country has to decide whether our terms and financing are best way out of the situation," said Alier. As to whether Ukraine will be able to negotiate a new loan with the IMF, and, if so, when Ukraine could receive the first disbursement, Max Alier refrained from specific forecasts. An IMF mission is on a visit to Ukraine from 29 January to 12 February 2013. The Government of Ukraine and the IMF are going to discuss the terms of a new Stand-By Arrangement for Ukraine.