President Zelensky has to decide whether he will continue to cooperation with the IMF or fulfil the demand of his business partner, oligarch Ihor Kolomoisky about the return of PrivatBank and Ukraine’s default. This is dictated by the critical state of the Ukrainian economy, which began to crumble before the start of the coronavirus pandemic, and is now suffering from global consequences.
“It is vital for Ukraine to resume cooperation with the IMF immediately. This financial oxygen cushion will provide a margin of safety. The Fund does not impose any burdensome conditions on Ukrainians. The main IMF requirement upsets only two people: personally, the President and his longtimebusiness partner and patron,” the fifth President of Ukraine, the leader of the European Solidarity party, Petro Poroshenko, said this in his video address.
He noted that the tranche could have been received as early as the past fall – and then the economic downturn could be avoided.
“Should this government passed a law to guarantee that Privatbank would not be returned to its former owners <…> Because why the Fund should give Ukraine the money that would immediately end up in the pocket of the former Privatshareholders? The project was agreed with the Fund but then they decided to cheat on our international partners and [hastily] adopted unacceptable amendments on the hush. This is was what I was told at a meeting in Brussels by the IMF Managing Director Kristalina Georgieva,” the president said.
He believes that the government should pass the bill as soon as possible and the European Solidarity faction will support it.
According to Poroshenko, the resumption of cooperation with the IMF will also open the way to receiving macro-financial assistance from the European Union, and a loan from the World Bank.