To reduce the Ukrainian budget deficit, the International Monetary Fund (IMF) intends to pressure Ukraine to accelerate currency devaluation, cut interest rates and raise taxes, the Bloomberg news agency has reported.
‘IMF staff due to arrive in Kiev are expected to put pressure on the conflict-torn country to take these steps to continue financial support,’ the Bloomberg publication said.
According to the agency, that the IMF intends to make this a condition for Kiev to allocate a new tranche of more than a billion dollars.
The National Bank of Ukraine, in turn, does not want to allow further weakening of the hryvnia, as since October last year the currency has already lost more than ten per cent of its value against the dollar, the material explains. And the tax increase will lower the rating of the Government, as the population of Ukraine will experience greater economic pressure, Bloomberg pointed out.
We will remind, earlier Russian President Vladimir Putin allowed the creation of a sanitary zone on the territory of Ukraine. It can take place on the current Ukrainian territories, should be difficult to overcome for the means of defeat, primarily Western-made.
