IMF and Ukraine reached deal on new $3.9 billion aid package

Ukraine ceded to the IMF’s demands and from November household gas rates will rise by almost 25 percent. The International Monetary Fund (IMF) and Ukraine reached an agreement on a new program of economic measures, after the implementation of which $ 3.9 billion loan will be provided to Kyiv. The program, designed for 14 months, will replace the previously adopted 4-year contract, agreed in March 2015 and expiring in five months, the IMF reported on Friday, October 19. In particular, Kyiv pledged to raise gas prices for the population. In accordance with the requirements of the IMF, tariffs will be increased by 23.5 percent from November 1, the new price will be 8.5 thousand hryvnia ($ 305) per one thousand cubic meters. “This is not easy, but it is less than initial requirements. And we will protect every family that finds it difficult to pay for heating and electricity”, said Prime Minister of Ukraine Volodymyr Groysman in Facebook. “Critical condition of cooperation” According to him, the adjustment of gas prices for consumers was a “critical condition for cooperation” with the IMF. “Ukraine made this commitment back in 2008. Do not do it now is to return to default and in hyperinflation times”, he added. The new agreement must be approved by the IMF Board of Governors after the draft budget for 2019 is approved in Kyiv in accordance with the recommendations of the fund. In 2015, Ukraine received $ 17.5 billion aid package, which was aimed at supporting the country’s way out of the worst recession. Since April 2017, Kyiv has not received IMF aid, AFP notes. Source: DW