NBU called the main threat to the fall of the hryvnia

NBU predicts a new wave of hryvnia devaluation without an IMF program.

The national Bank of Ukraine believes that the loss of the program of cooperation of Ukraine and the International monetary Fund (IMF) would create risks for the new wave of hryvnia devaluation.

This is stated in the report on financial stability.

The national Bank noted that after the nationalization of PrivatBank focus of the IMF program has shifted to structural reforms.

“To get the next tranche of the Fund, Ukraine needs to ensure reform of the pension system, to take steps to launch the agricultural land market, resume the privatization of state enterprises and strengthen the fight against corruption”, – reminded of the NBU.

The regulator noted the high relevance of the IMF program, given the significant medium-term risks due to significant payments on external public debt in 2019.

“Significant delays with the implementation of the reform package and the loss of momentum of cooperation with the IMF will limit access to the international capital markets and will prevent the timely and full servicing of the public external debt. This will create the risk of a new wave of hryvnia devaluation and loss of international reserves of the NBU,” – said the national Bank.

We will remind that the project of the budgetary resolution approved by the Cabinet of Ministers in 2018-2020, provides the average annual exchange rate of hryvnia to the dollar at the level of 29,3-31 UAH/$.

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