PM believes implementation of IMF program as prerequisite for attracting U.S. investors

The Ukrainian authorities and Parliament should show the political will to continue the reforms, to adopt tough laws, to assume political responsibility, Prime Minister of Ukraine Arseniy Yatsenyuk underlined following a meeting with U.S. Secretary of Commerce Penny Pritzker and representatives of leading U.S. companies on Monday 26 October.

Arseniy Yatsenyuk pointed out that the USA’s decision as to providing Ukraine with a $1 billion loan guarantee "is directly related to economic reforms, which should be conducted by the Parliament, the Government as well as by the President of Ukraine."

The basis for these economic reforms, according to the Prime Minister, is set in the memorandum on cooperation between Ukraine and the International Monetary Fund: "This means that the Ukrainian authorities and Parliament should show the political will to continue the reforms, to adopt tough laws, to assume political responsibility and thereby demonstrate that we are carrying out reforms not in words but in deeds."

He has emphasised that if the International Monetary Fund, World Bank, U.S. Government, Governments of the Group of Seven continue to support Ukraine financially - "it means that there are reforms", "They declare this publicly. Where there are no reforms, there is no money."

Arseniy Yatsenyuk reminded that there is a general scale of the IMF as to support for Ukraine "Within this scale the International Monetary Fund allocates USD17.5 billion while the Government of the United States, other G-7 member states and other contributors allocate USD7.5 billion."

All these funds are aimed at the macroeconomic stabilization, the Prime Minister stressed. In particular, some of the money goes to the gold and exchange currency reserve, "The gold and exchange currency reserve has increased from USD6 billion to almost 13 billion."

Another part of these funds, Arseniy Yatsenyuk informed, is now in the accounts of the Government of Ukraine and makes up almost USD3 billion.

Moreover, according to him, this financial mechanism allows Ukraine to pay off its external obligations "by not pulling money out of the pockets of taxpayers."

"On the one hand, the funds we receive are aimed to make us a financially stable country and pay off our external liabilities. On the other hand - the funds received by the state budget of Ukraine in the form of taxes, must develop the Ukrainian economy," he underlined.

Arseniy Yatsenyuk pointed out that this program is "not an IMF’s program but a reform program for Ukraine": "The implementation of this program is prerequisite for attracting U.S. investors. Clear rules ensure investments. Our reform program has clear Western rules."