Ukraine has ruled out taking any money from the International Monetary Fund next year.
In an end of year interview, Ukraine’s Prime Minister Mykola Azarov criticised the IMF’s debt crisis measures as being ineffective in several European countries, and said they have even led to stagnation.
But he stressed that he is ready to find a compromise with the organisation which has urged Ukraine to raise household gas prices.
Economist Oleksandr Savchenko told euronews that if no deal is struck then Kiev could be forced to look elsewhere for finance.
“China gives money on condition you buy goods from them. Russia does too – if you stick to their political conditions. The only structure that doesn’t impose conditions – is financial markets. They are the most democratic, however, they put all of the risks, both economic and political, into their rates. This is why they’re the most expensive.”
But Ukraine’s former finance minister, Viktor Pynzenyk, believes the country has other options:
“Ukrainians keep dozens, hundreds of billions of savings in hard currency. Where is this money? Under pillows, in jars. Simple question: why do they keep it under the pillows? The answer is clear: they’re afraid. They will keep on hiding this money until the reasons of this fear and the risks are eliminated.”
The IMF mission planned to visit Kiev this month to discuss the agreement on a standby loan but the visit has now been postponed till mid January.