Ukraine’s economy is stabilizing – IMF

“The Ukrainian economy remains fragile, but there are encouraging signs. In recent months, the exchange rate has stabilized, retail deposits in the national currency increased, the pace of economic decline is slowing. Prudent policies and further reform the economy will turn around and resume growth,” – the press service quoted the statement of the Fund First Deputy Managing Director of the IMF David Lipton.

According to him, the restoration of the banking system is the key to economic recovery as a whole. To do this, it is believed the IMF needs to move towards strengthening the banks through recapitalization, reduce connected lending and impaired assets written off.

“Maintaining appropriate tight monetary policy and the creation of official foreign exchange reserves will be crucial to the external stability and stabilizing inflation expectations. Once entrenched deflation, monetary policy can be relaxed to support economic activity. At the same time the termination of the administrative measures foreign exchange operations should take place gradually and consistently, under favorable conditions, “- said Lipton.

He also said that the authorities and the owners of the sovereign debt of Ukraine should continue its efforts to reach an agreement before the next revision of the program.

Lipton also stressed that the Ukrainian authorities need to mobilize strong political support for maintaining fiscal consolidation and reform of the energy sector in the near future and at the same time provide adequate social protection systems. He noted that since the adoption of the Extended Fund leadership has made a strong start in the implementation of the economic program.

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