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Ashburn

Ukraine's about to get billions after spending three maareformi

In early June, was released may 20, agreed by the Ukrainian government and the National Bank of the letter of intent and draft Memorandum with specific obligations assumed by Ukraine within the framework of a new standby loan program, to discuss her side suddenly moved to the beginning of may instead of the previously discussed expanded program EFF. While the text of the Memorandum was not even presented at the meeting of the government, which he approved. Then it became only known that the first tranche of a credit line should leave $ 1.9 billion.

But, despite the commitment of the Ukrainian side not to publicize the text of the document to the approval of the Fund's management, its main provisions was leaked almost immediately, and on 1 June became available and the documents themselves.

As expected, they contained new commitments to the IMF that need to be executed to get the next two tranches. If overpower their implementation Ukraine will not manage, the adoption of laws on land market and on the actual elimination of the National Bank of the legal field of Ukraine will cost the West lenders only 1.9 billion dollars. And not in the payment form and in the form of short-term loan. Because of further tranches may not be.

First, the national Bank has undertaken in the coming months to approve the plan of work with distressed assets of state banks and to toughen procedure of debt settlement of related entities by changing the number of laws.

The fact that today almost half of the loans of Ukrainian banks are idle. And a substantial proportion of state-owned banks. While Privat thereof almost 80% of all credit assets, which simultaneously amounts to half of all NPLs in the banking system. And, of course, much of that has been associated with PrivatBank persons — that is, companies Igor Kolomoisky and its partners.

That is, the prohibition on payment to the former owners of PrivatBank it is not limited to — the Fund required to continue the prosecution of Kolomoisky for previously withdrawn them from the Bank money.

Recently in Ukraine in order to reduce the NPL practiced their selling at a discount of 90% or even 95%. Whether for internal American political reasons in the framework of the confrontation between Republicans and Democrats, or even why, but in the case of Igor V. IMF, this practice is not satisfied. Under these commitments, the President Zelensky have to choose whether to switch your Rubicon and begin to outright war brought him to power oligarch or be limited to receipt of the first tranche. There is, of course, the temptation need to make laws, but in fact they can not fulfill. But it is unlikely that Ihor Kolomoisky will like to hang on a hook from his protégé. On the one hand. And with another — surely the Fund in the event of the adoption of the amendments will find a way to stimulate the Ukrainian leadership to action.

Second, the IMF needs to change the procedure for selecting members of the High Council of justice — collegiate independent (in the circumstances, it sounds ridiculous) constitutional body, which makes a submission on the appointment of judges and decides on their dismissal. In General supervises all the judges and controls the entire judicial system.

The essence of the wishes of the Foundation is to pass a selection procedure of members of the High Council in the hands of some "independent international experts". And to put it simply, to give full operational control over the judicial system of Ukraine in the hands of foreign curators, as it was recently made with the National Bank. It said it was on the Maidan — there is a Ukrainian master. Understand what the implementation of this paragraph shines any representative of the Ukrainian elites...

Thirdly, Ukraine will have to change some rules in the gas market.

First of all, to bring the Charter of "Naftogaz" "in accordance with the rules of the Organization for economic cooperation and development (OECD)" in reality, fully and completely convey the most significant public asset in the control of "Western partners". In principle, they run now through the Supervisory Council, consisting of their representatives. However, last year the government Groisman suddenly appeared phantom pain and it took a decree according to which received the right to appoint the head and members of the Board of "Naftogaz" without the consent of the Supervisory Board. This right, however, neither Groisman, nor his successors are not risk, but the sediment remained.

In the fiscal part of the project of the Memorandum Ukraine is committed to the end of the program not to accept liberal tax laws, not to introduce tax privileges and preferences for duties — that is, anything that would stimulate domestic production. But at the same time is obliged to hold themselves anecdotal reform of tax and customs service, not later than 1 January 2021 by combining them into a single legal entity in Kiev. Obviously knowing about the extent of corruption in the Ukrainian tax and customs authorities, the IMF does not require any traveling. Most likely, because this corruption does not prevent Western companies, they work under the "roof" of their embassies. And how about that local officials bred aborigines — problems of Indians of the Sheriff do not excite.

Of the others, especially "beautiful" it is worth mentioning commitments:

to continue the medical reform "them. Suprun", and educational reform in her image and likeness