The focus of Ukrainian authorities on the parliamentary election would not allow the country to meet the conditions of the International Monetary Fund (IMF) in 2019 and receive a tranche under the Stand-By Arrangement (SBA), according to JP Morgan experts.
The experts do not expect payments from the IMF this year mainly due to the populist approach, unfulfilled conditions and the government’s decision to “liberalize” gas prices only downward, while at the same time introducing restrictions to increase them,” JP Morgan said.
They said that the decision regarding the gas prices would affect cooperation with the IMF.
Analysts from UBS also predict possible delays with the IMF SBA.
The visit of the IMF mission to Ukraine is scheduled for May-June, and the Verkhovna Rada did not adopt changes to anti-corruption legislation after the decision of the Constitutional Court to repeal the Criminal Code’s article on illegal enrichment.
If there is no progress, this may lead to delays in the IMF SBA, UBS said.
