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The loans of the International Monetary Fund (IMF) are an optimal source of financing the deficit of Ukraine's state budget in 2010, Tigipko says. The loans of the International Monetary Fund (IMF) are an optimal source of financing the deficit of Ukraine's state budget in 2010, which will total at least Hr 35 billion, Vice Premier Sergiy Tigipko has said.

"The budget deficit will total at least Hr 35 billion. We need foreign loans to cover this deficit. Only the IMF can provide real borrowings at a good interest rate. If we continue our cooperation with the fund, then we should immediately agree that a loan of $6 billion will be used to cover the budget deficit," he said in an interview with the Kontrakty weekly newspaper.

Tigipko said that it would be expedient to quickly reform tax legislation in order to introduce the tough administration of tax collection and prevent tax evasion.

"If we have fair tax laws, businessmen will be able to work fairly, while the state budget will receive the necessary revenues. We should seriously think about tax amnesty as well," he said.

The IMF in autumn 2008 decided to disburse about $17 billion under the Stand-By Arrangement (SBA). Since then, Ukraine has already received three tranches worth almost $11 billion. The first $4.5 billion tranche was given to the National Bank of Ukraine (NBU) in November 2008. The IMF's second tranche - worth about $3 billion - was extended in May 2009. The funds were split between the NBU and the government of Prime Minister Yulia Tymoshenko. The third tranche (worth $3.5 billion) was provided in August 2009 and was at the disposal of the Tymoshenko government alone.

The allocation of the fourth tranche, worth $3.8 billion, was scheduled for November 2009 following the third review of the IMF's cooperation program with Ukraine. The IMF mission ended its work in Kyiv late in October 2009, but did not issue a positive statement on the completion of the review. The IMF said repeatedly that it expected a consolidated position from the Ukrainian authorities in the question of implementing anti-crisis measures.