Despite a rather stringent demand by representatives of the International Monetary Fund (IMF) regarding the allocation of the next tranche to Ukraine - to raise the price of gas for households - the main issue during its mission's next visit to the country will be the budget deficit and the balance of payments, Governor of the National Bank of Ukraine (NBU) Serhiy Arbuzov has said.
"This is a rather stringent demand, which IMF representatives have repeatedly made at the negotiations. At the same time, in my opinion, during the IMF mission’s next visit to Ukraine, which is scheduled for December, the question will not be whether the fund has changed its opinion on the need to increase tariffs or not. They will most likely raise questions about the state of the budget deficit and the balance of payments, because a drop in prices for natural gas will reduce the burden on the budget, the balance of payments and international reserves," he said in an interview with the Segodnya newspaper published on Thursday.
When asked whether agreement on a new reduction in the price of Russian gas could make the IMF drop its demand that Ukraine increase gas tariffs for households, Arbuzov did not rule out "that under this scenario, a compromise satisfying both parties will be reached."
"It may be, for example, a new agreement, which in this situation will give our country a chance to support its solvency with a new tranche and give a good signal to investors," he said.
Arbuzov said he did not rule out a delay in negotiations due to which Ukraine "will just physically have no time to get the tranche this year."
"But today we expect a positive balance of payments before the end of the year, and the government is working with the deficit using all of the possible means. Even if the receipt of the tranche is moved to next year, I think that we can calmly live through the end of the year," he said.
