IMF threatens to cease cooperation with Ukraine

IMF threatened to suspend cooperation with Ukraine if the authorities will increase the budget deficit without evidence, and will shatter the economic situation in the country. As the newspaper Delo, stated by the IMF Resident Representative in Ukraine Max Alier.

If such deviations (deficit) will be the result of deliberate policy, which is contrary to the spirit and objectives of the program, we will stop co-operation. Do not intend to take part in politics, which will lead to a deepening economic crisis, - said Alier. He also noted that such a decision can be made if the power of the country will spur inflation and undermine the stability of the banking system.

Max Alier said that any monetization of the state budget deficit should be carried out very carefully.

The consequences could be unpredictable and negative, in particular, the jump of the exchange rate and uncontrolled inflation, - explained the financier.

IMF Resident Representative reminded that the fall of the IMF team of specialists will arrive in Kyiv to discuss the draft state budget for 2010, and the Fund mission will visit Ukraine in late October to discuss cooperation programs. Expected adoption assistance strategy for medium and small banks.

key issue, according to Alier, a draft state budget-2010.

The project should be based on realistic macroeconomic projections, and its deficit should not exceed 3% of GDP, not including Naftogaz of Ukraine, and 4% taking into account the NAC , - explained the representative of the IMF.

He recalled that the IMF considers acceptable budget deficit in 2009 at 6% of GDP (8.6% in the light of Naftogaz of Ukraine ).

At a time when declining budget revenues, it is necessary for several years, severely control budgetary expenditures, reduce them to keep the budget deficit, - he explained the IMF's view of the situation.

representative of the fund also said that the IMF expects to increase gas prices to the public in September by 20% in 2010 on a quarterly basis by 20% - a move intended to reduce the amount of state support Naftogaz Ukraine. In addition, he said, in 2010, is expected to increase tax collection.