The international monetary Fund (IMF) on Tuesday approved a new program of cooperation with Ukraine, under which Ukraine will receive a loan totaling $5 billion First tranche of $2.1 billion is ready for “immediate payment”. It was assumed that the key requirements of the IMF, the adoption by Ukraine of the laws on banking regulation and the sale of land — fully implemented. But last week, the Internet got the text of the draft Memorandum of cooperation between the IMF and Kiev with a long list of requirements last. Pro-Russian opposition is sure that the signing of the document would be tantamount to “surrender” to the West. And the presidential faction “servant of the people” noted that “new program” does not refer to the first tranche and to the next and Kiev still have the “hard talks”.Ready for immediate laplaceoperator the Board of the IMF on Tuesday approved the granting to Kiev of the tranche in the amount of $2.1 billion Payment will be the first of five planned in the framework of the credit line under the program of the agreement on reserve credits (Stand-By Arrangement) for up to 18 months. At the working level of agreement agreed may 21. As then, the Fund said the new loan “aimed at providing balance of payments and budget support to help the authorities to combat the effects of shock from COVID-19”. This, in particular, said in a press release.It also States: the first tranche is ready for “immediate payment”, that is, Ukraine will receive it in June. The total loan amount to $5 billion. Note that in mid-April it was about another amount. The reason for these variations in the amount of the loan remains unknown. Its obligations to the IMF, Ukraine has fulfilled. The law on lifting the moratorium on sale of agricultural land, which sought the adoption of the Fund Vladimir Zelensky signed on April 28. And the so-called andikalovsky the law (by the name of oligarch and former owner of the nationalized PrivatBank Igor Kolomoisky), which prohibits the return of nationalized banks former shareholders, the President signed on may 21.The adoption of reforms cost is not without difficulties and, in General, the broad public support they enjoyed. Regarding the “anticolonial of the law” the opinions of Ukrainians were divided: for the initiative were made by 28% of citizens and as many against. This is evidenced by survey data “new Image Marketing Group” at the end of may. But the law on the sale of land, the majority of Ukrainians did not support. According to the Kyiv international Institute of sociology (KIIS) in April, the bill was supported by only 26% of respondents, while 60% opposed. The reforms could impact on the rating of the President, which, as evidenced by KIIS, dropped from 73% in September last year to 46% in may.Criticism let you down.RPOs and Kiev’s cooperation with the IMF as such. “Can a person live without water for a week? Why? With the IMF the situation is the same. Why do we take such a risk? Why do we need to bring the situation to default?” he wondered aloud on air of TV program “Freedom of speech” on TV channel “Ukraine”.Memorandum razgorelas opponents of cooperation with the IMF became louder after last week the media published a draft Memorandum of cooperation between Ukraine and the Fund. First, the network appeared excerpts and the full text of the 26-page document. In it, in particular, contains obligations that Kiev will have to take to obtain the following two tranches. A significant block of information on the Fund for COVID-19. It is noted that he will act no longer than the beginning of next year, and by March there will be a full audit of the use of funds of state agencies.Most of the text relates to fiscal policy. It is also noted that Ukraine will “work with the IMF” on the reform of the tax system, including “by expanding the tax base”. But the Ukrainian government promised in the programme period significantly the tax laws do not change. Recall that in the autumn of last year Vladimir Zelensky has shared his plan to conduct a “deep tax reform that will become effective in 2021”. It was in particular about “reducing the burden on business”. In new conditions the implementation of the reform can be called into question.Another condition, as follows from the draft of the Memorandum was the “return of assets from failed banks and prosecute” former shareholders. At the beginning of 2020, the volume of bad loans (NPL) in the Ukrainian banks reached the level of 48.4 per cent. The majority of distressed assets accounted for by state-owned banks, and 45% of them in Privat. Simply put, in addition to the requirements of the prohibition of the return of the banks ‘ former owners, the IMF has put forward one more thing — the persecution and arrest of billions of dollars of assets to their former owners.Finally, it is proposed to change the process of selecting members of the High Council of justice, a body forming the judiciary. For the “honest” judges will have to follow a Commission of independent experts that will be able to obtain the authority to appoint and dismiss judges in manual mode. The document also contains a passage according to which “at least half” the Commission will include individuals with significant experience of litigation, including received it abroad.In the IMF, the leaked documents did not comment on, but not confirmed on an official level, the Memorandum was sufficient to rouse the Ukrainian public. Particular outrage of the conditions of the Fund called the representatives of the Pro-Russian faction “��posiciona platform For life” (opsi). So, the co-Chairman of the faction Vadym Rabinovich pointed out: the adoption of the requirements of the Western creditors was tantamount to “surrender.” Representatives of the organizations policies, called “open enemies”. “People who are not able to control, became the head of the state, and today they are instructed in the most difficult time to manage the economy. Therefore, the IMF invites us to close school. I have a cognitive dissonance: where the school is, and where the IMF,”— he was indignant. The head of the political Council opsi Viktor Medvedchuk, speaking out against banking reform, at the end of March stated: “the IMF is an open blackmail.” Along with this, he proposed a much more radical way of raising funds — negotiate with Moscow and Beijing at that Kiev deliberately would not agree.However, the presidential faction “servant of the people” with criticism partially agree. “There is a new cooperation program with the IMF, where there is a draft Memorandum in which many things are presented in a way that will not be perceived neither Ukrainian society nor Parliament,”— said the head of the faction David Arakhamiya, the TV channel “Ukraine is 24”. The politician said that “new program” does not apply to the first tranche, but only to the next. “There will have to tough negotiations, and not the fact that they will lead to some kind of success,”- said the politician.Marina Kovalenko
